| ý |   | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     |
|--------|--------|----------------------------------------------------------|
|   |   | SECURITIES EXCHANGE ACT OF 1934                          |
|   |   | For the fiscal year ended December 31, 2010              |
|   |   | OR                                                       |
| o      |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|   |   | SECURITIES EXCHANGE ACT OF 1934                          |

| Florida                                       |   | 0-13358                  |   | 59-2273542                        |
|-----------------------------------------------|--------|--------------------------|--------|-----------------------------------|
| (State of Incorporation)                      |   | (Commission File Number) |   | (IRS Employer Identification No.) |
| 217 North Monroe Street, Tallahassee, Florida |   |  32301              |
| (Address of principal executive offices)      |   | (Zip Code)               |

| Class                                   |   | Outstanding at February 28, 2011 |
|-----------------------------------------|--------|----------------------------------|
| Common Stock, $0.01 par value per share |   | 17,120,089 shares                |
|                                    |   |                             |

----

| PART I        |                                                                                                                   |   | PAGE   |   |
|---------------|------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|          |                                                                                                                   |   |   |   |
| Item 1.       | Business                                                                                                               |   |   | 4      |   |
| Item 1A.      | Risk Factors                                                                                                           |   |   | 18     |   |
| Item 1B.      | Unresolved Staff Comments                                                                                              |   |   | 26     |   |
| Item 2.       | Properties                                                                                                             |   |   | 26     |   |
| Item 3.       | Legal Proceedings                                                                                                      |   |   | 26     |   |
| Item 4.       | [Removed and Reserved]                                                                                            |   |   | 26     |   |
|          |                                                                                                                   |   |   |   |   |
| PART II       |                                                                                                                   |   |   |   |   |
|          |                                                                                                                   |   |   |   |   |
|  Item 5. | Market for the Registrant’s Common Equity, Related Shareowner Matters, and Issuer Purchases of Equity Securities |   |   | 26     |   |
| Item 6.       | Selected Financial Data                                                                                                |   |   | 28     |   |
| Item 7.       | Management's Discussion and Analysis of Financial Condition and Results of Operations                                  |   |   | 29     |   |
| Item 7A.      | Quantitative and Qualitative Disclosure About Market Risk                                                              |   |   | 57     |   |
| Item 8.       | Financial Statements and Supplementary Data                                                                            |   |   | 58     |   |
| Item 9.       | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                   |   |   | 98     |   |
| Item 9A.      | Controls and Procedures                                                                                                |   |   | 98     |   |
| Item 9B.      | Other Information                                                                                                      |   |   | 98     |   |
|          |                                                                                                                   |   |   |   |   |
| PART III      |                                                                                                                   |   |   |   |   |
|          |                                                                                                                   |   |   |   |   |
| Item 10.      | Directors, Executive Officers, and Corporate Governance                                                                |   |   | 100    |   |
| Item 11.      | Executive Compensation                                                                                                 |   |   | 100    |   |
| Item 12.      | Security Ownership of Certain Beneficial Owners and Management and Related Shareowner Matters                          |   |   | 100    |   |
| Item 13.      | Certain Relationships and Related Transactions, and Director Independence                                              |   |   | 100    |   |
| Item 14.      | Principal Accountant Fees and Services                                                                                 |   |   | 100    |   |
|          |                                                                                                                   |   |   |   |   |
| PART IV       |                                                                                                                   |   |   |   |   |
|          |                                                                                                                   |   |   |   |   |
| Item 15.      | Exhibits and Financial Statement Schedules                                                                             |   |   | 101    |   |
| Signatures    |                                                                                                                   |   | 103    |   |

----

| §   | legislative or regulatory changes, including the Dodd-Frank Act; |
|--------------------|------------------------------------------------------------------|

| §   | the strength of the United States economy in general and the strength of the local economies in which we conduct operations; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| §   | the accuracy of our financial statement estimates and assumptions, including the estimate for our loan loss provision; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| §   | the frequency and magnitude of foreclosure of our loans; |
|--------------------|----------------------------------------------------------|

| §   | continued depression of the market value of the Company that could result in an impairment of goodwill; |
|--------------------|---------------------------------------------------------------------------------------------------------|

| §   | restrictions on our operations, including the inability to pay dividends without our regulators’ consent; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| §   | the effects of the health and soundness of other financial institutions, including the FDIC’s need to increase Deposit Insurance Fund assessments; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | our ability to declare and pay dividends; |
|--------------------|-------------------------------------------|

| §   | changes in the securities and real estate markets; |
|--------------------|----------------------------------------------------|

| §   | changes in monetary and fiscal policies of the U.S. Government; |
|--------------------|-----------------------------------------------------------------|

| §   | inflation, interest rate, market and monetary fluctuations; |
|--------------------|-------------------------------------------------------------|

| §   | the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| §   | our need and our ability to incur additional debt or equity financing; |
|--------------------|------------------------------------------------------------------------|

| §   | the effects of harsh weather conditions, including hurricanes, and man-made disasters; |
|--------------------|----------------------------------------------------------------------------------------|

| §   | our ability to comply with the extensive laws and regulations to which we are subject; |
|--------------------|----------------------------------------------------------------------------------------|

| §   | the willingness of clients to accept third-party products and services rather than our products and services and vice versa; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| §   | increased competition and its effect on pricing; |
|--------------------|--------------------------------------------------|

| §   | technological changes; |
|--------------------|------------------------|

| §   | negative publicity and the impact on our reputation; |
|--------------------|------------------------------------------------------|

| §   | the effects of security breaches and computer viruses that may affect our computer systems; |
|--------------------|---------------------------------------------------------------------------------------------|

| §   | changes in consumer spending and saving habits; |
|--------------------|-------------------------------------------------|

| §   | growth and profitability of our noninterest income; |
|--------------------|-----------------------------------------------------|

| §   | changes in accounting principles, policies, practices or guidelines; |
|--------------------|----------------------------------------------------------------------|

| §   | the limited trading activity of our common stock; |
|--------------------|---------------------------------------------------|

| §   | the concentration of ownership of our common stock; |
|--------------------|-----------------------------------------------------|

| §   | anti-takeover provisions under federal and state law as well as our Articles of Incorporation and our Bylaws; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| §   | our ability to integrate the business and operations of companies and banks that we have acquired, and those we may acquire in the future; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| §   | other risks described from time to time in our filings with the Securities and Exchange Commission; and |
|--------------------|---------------------------------------------------------------------------------------------------------|

| §   | our ability to manage the risks involved in the foregoing. |
|--------------------|------------------------------------------------------------|

----

PART I

 Business

----

| §   | Business Banking – The Bank provides banking services to corporations and other business clients. Credit products are available for a wide variety of general business purposes, including financing for commercial business properties, equipment, inventories and accounts receivable, as well as commercial leasing and letters of credit.  We also provide treasury management services, and, through a marketing alliance with Elavon, Inc., merchant credit card transaction processing services. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Commercial Real Estate Lending – The Bank provides a wide range of products to meet the financing needs of commercial developers and investors, residential builders and developers, and community development.  Credit products are available to facilitate the purchase of land and/or build structures for business use and for investors who are developing residential or commercial property. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Residential Real Estate Lending – The Bank provides products to help meet the home financing needs of consumers, including conventional permanent and construction/permanent (fixed or adjustable rate) financing arrangements, and FHA/VA loan products.  The bank offers both fixed-rate and adjustable rate residential mortgage (ARM) loans.  A portion of our loans originated are sold into the secondary market.  The Bank offers these products through its existing network of banking offices.  We do not originate subprime residential real estate loans. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Retail Credit – The Bank provides a full range of loan products to meet the needs of consumers, including personal loans, automobile loans, boat/RV loans, home equity loans, and credit card programs. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Institutional Banking – The Bank provides banking services to meet the needs of state and local governments, public schools and colleges, charities, membership and not-for-profit associations including customized checking and savings accounts, cash management systems, tax-exempt loans, lines of credit, and term loans. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Retail Banking – The Bank provides a full range of consumer banking services, including checking accounts, savings programs, automated teller machines (ATMs), debit/credit cards, night deposit services, safe deposit facilities, PC/Internet banking, and mobile banking.  Clients can use Capital City Bank Direct which offers both a “live” call center between the hours of 8 a.m. to 6 p.m. five days a week, and an automated phone system offering 24-hour access to their deposit and loan account information, and transfer funds between linked accounts.  The Bank is a member of the “Star” ATM Network that permits banking clients to access cash at ATMs or point of sale merchants. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                          |   | Market Share as of June 30,(1) |   |
|-------------------------------|--------|--------------------------------|--------|
|                          |   | 2010                           |   |   | 2009 |   |   | 2008 |   |
| Florida                       |   |                           |   |   |   |   |   |   |   |
|   Alachua County    |   |                           | 4.8    | % |   |   | 3.9 | % |   |   | 4.6 | % |
|   Bradford County   |   |                           | 50.3   | % |   |   | 51.3 | % |   |   | 50.1 | % |
|   Citrus County     |   |                           | 2.9    | % |   |   | 2.7 | % |   |   | 3.1 | % |
|   Clay County       |   |                           | 1.8    | % |   |   | 1.7 | % |   |   | 1.9 | % |
|   Dixie County      |   |                           | 21.3   | % |   |   | 23.4 | % |   |   | 23.4 | % |
|   Gadsden County    |   |                           | 59.1   | % |   |   | 55.1 | % |   |   | 55.7 | % |
|  Gilchrist County   |   |                           | 39.2   | % |   |   | 39.5 | % |   |   | 37.8 | % |
|   Gulf County       |   |                           | 8.3    | % |   |   | 7.7 | % |   |   | 9.1 | % |
|   Hernando County   |   |                           | 2.0    | % |   |   | 1.6 | % |   |   | 1.2 | % |
|   Jefferson County  |   |                           | 19.5   | % |   |   | 18.3 | % |   |   | 21.9 | % |
|   Leon County       |   |                           | 16.9   | % |   |   | 15.9 | % |   |   | 17.6 | % |
|   Levy County       |   |                           | 28.6   | % |   |   | 27.9 | % |   |   | 31.7 | % |
|   Madison County    |   |                           | 10.2   | % |   |   | 10.1 | % |   |   | 12.1 | % |
|   Pasco County      |   |                           | 0.3    | % |   |   | 0.2 | % |   |   | 0.2 | % |
|   Putnam County     |   |                           | 14.9   | % |   |   | 14.0 | % |   |   | 19.7 | % |
|   St. Johns County  |   |                           | 0.9    | % |   |   | 0.8 | % |   |   | 1.1 | % |
|   Suwannee County   |   |                           | 6.7    | % |   |   | 6.6 | % |   |   | 7.2 | % |
|   Taylor County     |   |                           | 30.7   | % |   |   | 30.7 | % |   |   | 31.1 | % |
|   Wakulla County    |   |                           | 5.3    | % |   |   | 3.8 | % |   |   | 5.5 | % |
|   Washington County |   |                           | 13.8   | % |   |   | 14.2 | % |   |   | 17.0 | % |
| Georgia                       |   |                           |   |   |   |   |   |   |   |   |   |   |
|   Bibb County       |   |                           | 3.3    | % |   |   | 2.6 | % |   |   | 2.1 | % |
|   Burke County      |   |                           | 6.9    | % |   |   | 7.7 | % |   |   | 7.4 | % |
|   Grady County           |   |                           | 16.1   | % |   |   | 16.2 | % |   |   | 16.7 | % |
|   Laurens County    |   |                           | 10.9   | % |   |   | 12.7 | % |   |   | 16.2 | % |
|   Troup County      |   |                           | 7.2    | % |   |   | 5.9 | % |   |   | 5.6 | % |
| Alabama                       |   |                           |   |   |   |   |   |   |   |   |   |   |
|   Chambers County   |   |                           | 5.7    | % |   |   | 6.6 | % |   |   | 7.3 | % |

| (1) | Obtained from the June 30, 2010 FDIC/OTS Summary of Deposits Report. |
|-----|----------------------------------------------------------------------|

----

| County                  |   | Number ofCommercial Banks |   |   | Number of Commercial Bank Offices |   |
|-------------------------|--------|---------------------------|--------|--------|-----------------------------------|--------|
| Florida                 |   |                      |   |   |                              |   |
|    Alachua    |   |                      | 15     |   |                              |   | 65 |   |
|    Bradford   |   |                      | 3      |   |                              |   | 3 |   |
|    Citrus     |   |                      | 14     |   |                              |   | 49 |   |
|    Clay       |   |                      | 15     |   |                              |   | 33 |   |
|    Dixie      |   |                      | 4      |   |                              |   | 5 |   |
|    Gadsden    |   |                      | 4      |   |                              |   | 6 |   |
|    Gilchrist  |   |                      | 4      |   |                              |   | 8 |   |
|    Gulf       |   |                      | 5      |   |                              |   | 8 |   |
|    Hernando   |   |                      | 14     |   |                              |   | 42 |   |
|    Jefferson  |   |                      | 2      |   |                              |   | 2 |   |
|    Leon       |   |                      | 19     |   |                              |   | 95 |   |
|    Levy       |   |                      | 3      |   |                              |   | 12 |   |
|    Madison    |   |                      | 6      |   |                              |   | 6 |   |
|    Pasco      |   |                      | 25     |   |                              |   | 119 |   |
|    Putnam     |   |                      | 6      |   |                              |   | 16 |   |
|    St. Johns  |   |                      | 23     |   |                              |   | 66 |   |
|    Suwannee   |   |                      | 5      |   |                              |   | 8 |   |
|    Taylor     |   |                      | 3      |   |                              |   | 4 |   |
|    Wakulla    |   |                      | 4      |   |                              |   | 7 |   |
|    Washington |   |                      | 6      |   |                              |   | 6 |   |
| Georgia                 |   |                      |   |   |                              |   |   |   |
|    Bibb       |   |                      | 11     |   |                              |   | 56 |   |
|    Burke      |   |                      | 5      |   |                              |   | 10 |   |
|    Grady      |   |                      | 5      |   |                              |   | 8 |   |
|    Laurens    |   |                      | 10     |   |                              |   | 20 |   |
|   Troup            |   |                      | 11     |   |                              |   | 26 |   |
| Alabama                 |   |                      |   |   |                              |   |   |   |
|    Chambers   |   |                      | 5      |   |                              |   | 10 |   |

----

| §   | Increased Capital Standards and Enhanced Supervision.  The federal banking agencies are required to establish minimum leverage and risk-based capital requirements for banks and bank holding companies. These new standards will be no lower than current regulatory capital and leverage standards applicable to insured depository institutions and may, in fact, be higher when established by the agencies. The Dodd-Frank Act also increases regulatory oversight, supervision and examination of banks, bank holding companies and their respective subsidiaries by the appropriate regulatory agency. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | The Consumer Financial Protection Bureau. The Dodd-Frank Act creates the Consumer Financial Protection Bureau within the Federal Reserve. The Bureau is tasked with establishing and implementing rules and regulations under certain federal consumer protection laws with respect to the conduct of providers of certain consumer financial products and services. The Bureau has rulemaking authority over many of the statutes governing products and services offered to bank consumers. In addition, the Dodd-Frank Act permits states to adopt consumer protection laws and regulations that are more stringent than those regulations promulgated by the Bureau and state attorneys general are permitted to enforce consumer protection rules adopted by the Bureau against state-chartered institutions. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Deposit Insurance. The Dodd-Frank Act makes permanent the $250,000 deposit insurance limit for insured deposits. Amendments to the Federal Deposit Insurance Act also revise the assessment base against which an insured depository institution’s deposit insurance premiums paid to the Deposit Insurance Fund (“DIF”) will be calculated. Under the amendments, the assessment base will no longer be the institution’s deposit base, but rather its average consolidated total assets less its average tangible equity during the assessment period. Additionally, the Dodd-Frank Act makes changes to the minimum designated reserve ratio of the DIF, increasing the minimum from 1.15 percent to 1.35 percent of the estimated amount of total insured deposits and eliminating the requirement that the FDIC pay dividends to depository institutions when the reserve ratio exceeds certain thresholds. The Dodd-Frank Act also repeals the federal prohibition on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction accounts. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Transactions with Affiliates. The Dodd-Frank Act enhances the requirements for certain transactions with affiliates under Section 23A and 23B of the Federal Reserve Act, including an expansion of the definition of “covered transactions” and increasing the amount of time for which collateral requirements regarding covered transactions must be maintained. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Transactions with Insiders. Insider transaction limitations are expanded through the strengthening on loan restrictions to insiders and the expansion of the types of transactions subject to the various limits, including derivative transactions, repurchase agreements, reverse repurchase agreements and securities lending or borrowing transactions. Restrictions are also placed on certain asset sales to and from an insider to an institution, including requirements that such sales be on market terms and, in certain circumstances, approved by the institution’s board of directors. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Enhanced Lending Limits. The Dodd-Frank Act strengthens the existing limits on a depository institution’s credit exposure to one borrower. Current banking law limits a depository institution’s ability to extend credit to one person (or group of related persons) in an amount exceeding certain thresholds. The Dodd-Frank Act expands the scope of these restrictions to include credit exposure arising from derivative transactions, repurchase agreements, and securities lending and borrowing transactions. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Compensation Practices.  The Dodd-Frank Act provides that the appropriate federal regulators must establish standards prohibiting as an unsafe and unsound practice any compensation plan of a bank holding company or other “covered financial institution” that provides an insider or other employee with “excessive compensation” or could lead to a material financial loss to such firm.  In June 2010, prior to the Dodd-Frank Act, the bank regulatory agencies promulgated the Interagency Guidance on Sound Incentive Compensation Policies, which requires that financial institutions establish metrics for measuring the impact of activities to achieve incentive compensation with the related risk to the financial institution of such behavior. Together, the Dodd-Frank Act and the recent guidance on compensation may impact the current compensation policies at the Banks. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Holding Company Capital Levels.  The Dodd-Frank Act requires bank regulators to establish minimum capital levels for holding companies that are at least of the same nature as those applicable to financial institutions. All trust preferred securities, or TRUPs, issued by bank or thrift holding companies after May 19, 2010 will be counted as Tier II Capital. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

| §   | internal policies, procedures and controls designed to implement and maintain the savings association’s compliance with all of the requirements of the USA PATRIOT Act, the BSA and related laws and regulations; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | systems and procedures for monitoring and reporting of suspicious transactions and activities; |
|--------------------|------------------------------------------------------------------------------------------------|

| §   | a designated compliance officer; |
|--------------------|----------------------------------|

| §   | employee training; |
|--------------------|--------------------|

| §   | an independent audit function to test the anti-money laundering program; |
|--------------------|--------------------------------------------------------------------------|

| §   | procedures to verify the identity of each customer upon the opening of accounts; and |
|--------------------|--------------------------------------------------------------------------------------|

| §   | heightened due diligence policies, procedures and controls applicable to certain foreign accounts and relationships. |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

----

----

----

Risk

| §   | the risk characteristics of various classifications of loans; |
|--------------------|---------------------------------------------------------------|

| §   | previous loan loss experience; |
|--------------------|--------------------------------|

| §   | specific loans that have loss potential; |
|--------------------|------------------------------------------|

| §   | delinquency trends; |
|--------------------|---------------------|

| §   | estimated fair market value of the collateral; |
|--------------------|------------------------------------------------|

| §   | current economic conditions; and |
|--------------------|----------------------------------|

| §   | geographic and industry loan concentrations. |
|--------------------|----------------------------------------------|

----

| §   | Commercial Real Estate Loans. Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service.  These loans also involve greater risk because they are generally not fully amortizing over a loan period, but rather have a balloon payment due at maturity.  A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Commercial Loans. Repayment is generally dependent upon the successful operation of the borrower’s business.  In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  §   | Construction Loans. The risk of loss is largely dependent on our initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing.  During the construction phase, a number of factors can result in delays or cost overruns.  If our estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing our loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral. |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Vacant Land Loans. Because vacant or unimproved land is generally held by the borrower for investment purposes or future use, payments on loans secured by vacant or unimproved land will typically rank lower in priority to the borrower than a loan the borrower may have on their primary residence or business.  These loans are susceptible to adverse conditions in the real estate market and local economy. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §  | Consumer Loans. Consumer loans (such as personal lines of credit) are collateralized, if at all, with assets that may not provide an adequate source of payment of the loan due to depreciation, damage, or loss. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | general or local economic conditions; |
|--------------------|---------------------------------------|

| §   | environmental cleanup liability; |
|--------------------|----------------------------------|

| §   | neighborhood values; |
|--------------------|----------------------|

| §   | interest rates; |
|--------------------|-----------------|

| §   | real estate tax rates; |
|--------------------|------------------------|

| §   | operating expenses of the mortgaged properties; |
|--------------------|-------------------------------------------------|

| §   | supply of and demand for rental units or properties; |
|--------------------|------------------------------------------------------|

| §   | ability to obtain and maintain adequate occupancy of the properties; |
|--------------------|----------------------------------------------------------------------|

| §   | zoning laws; |
|--------------------|--------------|

----

| §   | governmental rules, regulations and fiscal policies; and |
|--------------------|----------------------------------------------------------|

| §   | acts of God. |
|--------------------|--------------|

----

| §   | change the assessment base for federal deposit insurance from the amount of insured deposits to total consolidated assets less average tangible capital, eliminate the ceiling on the size of the federal deposit insurance fund, and increase the floor of the size of the federal deposit insurance fund; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | repeal the federal prohibitions on the payment of interest on demand deposits, thereby generally permitting the payment of interest on all deposit accounts; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | centralize responsibility for promulgating regulations under and enforcing federal consumer financial protection laws in a new bureau of consumer financial protection; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | require the FDIC to seek to make its capital requirements for banks countercyclical; |
|--------------------|--------------------------------------------------------------------------------------|

| §   | implement corporate governance revisions, including with regard to executive compensation and proxy access by shareholders, that apply to all public companies, not just financial institutions; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | establish new rules and restrictions regarding the origination of mortgages; and |
|--------------------|----------------------------------------------------------------------------------|

| §   | permit the Federal Reserve to prescribe regulations regarding interchange transaction fees, and limit them to an amount reasonable and proportional to the cost incurred by the issuer for the transaction in question. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| §   | Supermajority voting requirements to remove a director from office; |
|--------------------|---------------------------------------------------------------------|

| §   | Provisions regarding the timing and content of shareowner proposals and nominations; |
|--------------------|--------------------------------------------------------------------------------------|

| §   | Supermajority voting requirements to amend Articles of Incorporation unless approval is received by a majority of “disinterested directors”; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Absence of cumulative voting; and |
|--------------------|-----------------------------------|

| §   | Inability for shareowners to take action by written consent. |
|--------------------|--------------------------------------------------------------|

----

Item 1B.  
Unresolved

|   | Properties |
|--------|------------|

| Item 3. | Legal Proceedings |
|---------|-------------------|

| Item 4. | Reserved |
|---------|----------|

PART II

| Item 5. | Market for the Registrant's Common Equity, Related Shareowner Matters, and Issuer Purchases of Equity Securities |
|---------|------------------------------------------------------------------------------------------------------------------|

|                              | 2010          |   | 2009         |   |
|-----------------------------------|---------------|--------|--------------|--------|
|                              | FourthQuarter |   | ThirdQuarter |   | SecondQuarter |   | FirstQuarter |   | FourthQuarter |   | ThirdQuarter |   | SecondQuarter |   | FirstQuarter |   |
| Common stock price:               |          |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High                              |          | $      | 14.19        |   |   | $ | 14.24 |   |   | $ | 18.25 |   |   | $ | 14.61 |   |   | $ | 14.34 |   |   | $ | 17.10 |   |   | $ | 17.35 |   |   | $ | 27.31 |   |
| Low                               |          |   | 11.56        |   |   |   | 10.76 |   |   |   | 12.36 |   |   |   | 11.57 |   |   |   | 11.00 |   |   |   | 13.92 |   |   |   | 11.01 |   |   |   | 9.50 |   |
| Close                             |          |   | 12.60        |   |   |   | 12.14 |   |   |   | 12.38 |   |   |   | 14.25 |   |   |   | 13.84 |   |   |   | 14.20 |   |   |   | 16.85 |   |   |   | 11.46 |   |
| Cash dividends declared per share |          |   | 0.10         |   |   |   | 0.10 |   |   |   | 0.10 |   |   |   | 0.19 |   |   |   | 0.19 |   |   |   | 0.19 |   |   |   | 0.19 |   |   |   | 0.19 |   |

----

|                          |     |   | Period Ending |   |     |   |
|-------------------------------|----------|--------|---------------|--------|----------|--------|
| Index                         | 12/31/05 |   | 12/31/06      |   | 12/31/07 |   | 12/31/08 |   | 12/31/09 |   | 12/31/10 |   |
| Capital City Bank Group, Inc. |     | $      | 100.00        |   |     | $      | 105.00 |   |   | $ | 85.93 |   |   | $ | 85.37 |   |   | $ | 46.03 |   |   | $ | 43.52 |   |
| NASDAQ Composite              |     |   | 100.00        |   |     |   | 110.39 |   |   |   | 122.15 |   |   |   | 73.32 |   |   |   | 106.57 |   |   |   | 125.91 |   |
| SNL $1B-$5B Bank Index        |     |   | 100.00        |   |     |   | 115.72 |   |   |   | 84.29 |   |   |   | 69.91 |   |   |   | 50.11 |   |   |   | 56.81 |   |

----

| Item 6. | Selected Financial Data |   |
|---------|-------------------------|--------|

|                                          |   | For the Years Ended December 31, |                                                             |
|-----------------------------------------------|--------|----------------------------------|------------------------------------------------------------------|
| (Dollars in Thousands, Except Per Share Data  |   | 2010                             |                                                             |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                          |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income                               |   | $                                |     110,495                                  |   |   | $ | 122,776 |   |   | $ | 142,866 |   |   | $ | 165,323 |   |   | $ | 165,893 |   |
| Net Interest Income                           |   |                             |      97,533                             |   |   |   | 105,934 |   |   |   | 108,866 |   |   |   | 112,241 |   |   |   | 119,136 |   |
| Provision for Loan Losses                     |   |                             |        23,824                 |   |   |   | 40,017 |   |   |   | 32,496 |   |   |   | 6,163 |   |   |   | 1,959 |   |
| Net (Loss) Income                             |   |                             |           (413 | ) |   |   | (3,471 | ) |   |   | 15,225 |   |   |   | 29,683 |   |   |   | 33,265 |   |
|                                          |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per Common Share:                             |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic Net (Loss) Income                       |   | $                                |          (0.02      | )  |   | $ | (0.20 | )  |   | $ | 0.89 |   |   | $ | 1.66 |   |   | $ | 1.79 |   |
| Diluted Net (Loss) Income                     |   |                             |          (0.02      | )  |   |   | (0.20 | )  |   |   | 0.89 |   |   |   | 1.66 |   |   |   | 1.79 |   |
| Cash Dividends Declared                       |   |                             |          0.49       |   |   |   | 0.76 |   |   |   | 0.74 |   |   |   | 0.71 |   |   |   | 0.66 |   |
| Book Value                                    |   |                             |         15.15            |   |   |   | 15.72 |   |   |   | 16.27 |   |   |   | 17.03 |   |   |   | 17.01 |   |
|                                          |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performance Ratios:                           |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on Average Assets                      |   |                             | (0.02                                                            | )% |   |   | (0.14 | )% |   |   | 0.59 | % |   |   | 1.18 | % |   |   | 1.29 | % |
| Return on Average Equity                      |   |                             | (0.16                                                            | )  |   |   | (1.26 | )  |   |   | 5.06 |   |   |   | 9.68 |   |   |   | 10.48 |   |
| Net Interest Margin (FTE)                     |   |                             | 4.32                                                             |   |   |   | 4.96 |   |   |   | 4.96 |   |   |   | 5.25 |   |   |   | 5.35 |   |
| Noninterest Income as % of Operating Revenues |   |                             | 36.81                                                            |   |   |   | 35.14 |   |   |   | 38.11 |   |   |   | 34.57 |   |   |   | 31.81 |   |
| Efficiency Ratio                              |   |                             | 84.23                                                            |   |   |   | 77.33 |   |   |   | 64.91 |   |   |   | 66.77 |   |   |   | 65.42 |   |
|                                          |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset Quality:                                |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses                     |   | $                                | 35,436                                                           |   |   | $ | 43,999 |   |   | $ | 37,004 |   |   | $ | 18,066 |   |   | $ | 17,217 |   |
| Allowance for Loan Losses to Loans            |   |                             | 2.01                                                             | % |   |   | 2.30 | % |   |   | 1.89 | % |   |   | 0.95 | % |   |   | 0.86 | % |
| Nonperforming Assets                          |   |                             | 145,286                                                          |   |   |   | 144,052 |   |   |   | 107,842 |   |   |   | 28,163 |   |   |   | 8,731 |   |
| Nonperforming Assets to Loans + ORE           |   |                             | 8.00                                                             |   |   |   | 7.38 |   |   |   | 5.48 |   |   |   | 1.47 |   |   |   | 0.44 |   |
| Allowance to Nonperforming Loans              |   |                             | 40.57                                                            |   |   |   | 40.77 |   |   |   | 37.52 |   |   |   | 71.92 |   |   |   | 214.09 |   |
| Net Charge-Offs to Average Loans              |   |                             | 1.35                                                             |   |   |   | 1.66 |   |   |   | 0.71 |   |   |   | 0.27 |   |   |   | 0.11 |   |
|                                          |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Ratios:                               |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital Ratio                          |   |                             | 13.24                                                            | %  |   |   | 12.76 | %  |   |   | 13.34 | %  |   |   | 13.05 | %  |   |   | 14.00 | %  |
| Total Capital Ratio                           |   |                             | 14.59                                                            |   |   |   | 14.11 |   |   |   | 14.69 |   |   |   | 14.05 |   |   |   | 14.95 |   |
| Tangible Capital Ratio                        |   |                             | 6.82                                                             |   |   |   | 6.84 |   |   |   | 7.76 |   |   |   | 7.71 |   |   |   | 8.48 |   |
| Leverage Ratio                                |   |                             | 10.10                                                            |   |   |   | 10.39 |   |   |   | 11.51 |   |   |   | 10.83 |   |   |   | 11.30 |   |
| Equity to Assets Ratio                        |   |                             | 9.88                                                             |   |   |   | 9.89 |   |   |   | 11.20 |   |   |   | 11.19 |   |   |   | 12.15 |   |
| Dividend Pay-Out Ratio                        |   |                             | NM                                                               |   |   |   | NM |   |   |   | 83.71 |   |   |   | 42.77 |   |   |   | 37.01 |   |
|                                          |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Averages for the Year:                        |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, Net                                    |   | $                                | 1,829,193                                                        |   |   | $ | 1,961,990 |   |   | $ | 1,918,417 |   |   | $ | 1,934,850 |   |   | $ | 2,029,397 |   |
| Earning Assets                                |   |                             | 2,294,282                                                        |   |   |   | 2,184,232 |   |   |   | 2,240,649 |   |   |   | 2,183,528 |   |   |   | 2,258,277 |   |
| Total Assets                                  |   |                             | 2,644,731                                                        |   |   |   | 2,516,815 |   |   |   | 2,567,905 |   |   |   | 2,507,217 |   |   |   | 2,581,078 |   |
| Deposits                                      |   |                             | 2,192,323                                                        |   |   |   | 1,992,429 |   |   |   | 2,066,065 |   |   |   | 1,990,446 |   |   |   | 2,034,931 |   |
| Shareowners' Equity                           |   |                             | 264,679                                                          |   |   |   | 275,545 |   |   |   | 300,890 |   |   |   | 306,617 |   |   |   | 317,336 |   |
|                                          |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year-End Balances:                            |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, Net                                    |   | $                                | 1,758,671                                                        |   |   | $ | 1,915,940 |   |   | $ | 1,957,797 |   |   | $ | 1,915,850 |   |   | $ | 1,999,721 |   |
| Earning Assets                                |   |                             | 2,269,185                                                        |   |   |   | 2,369,029 |   |   |   | 2,156,172 |   |   |   | 2,272,829 |   |   |   | 2,270,410 |   |
| Total Assets                                  |   |                             | 2,622,053                                                        |   |   |   | 2,708,324 |   |   |   | 2,488,699 |   |   |   | 2,616,327 |   |   |   | 2,597,910 |   |
| Deposits                                      |   |                             | 2,103,976                                                        |   |   |   | 2,258,234 |   |   |   | 1,992,174 |   |   |   | 2,142,344 |   |   |   | 2,081,654 |   |
| Shareowners' Equity                           |   |                             | 259,019                                                          |   |   |   | 267,899 |   |   |   | 278,830 |   |   |   | 292,675 |   |   |   | 315,770 |   |
|                                          |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Data:                                   |   |                             |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic Average Shares Outstanding              |   |                             | 17,075,867                                                       |   |   |   | 17,043,964 |   |   |   | 17,141,454 |   |   |   | 17,909,396 |   |   |   | 18,584,519 |   |
| Diluted Average Shares Outstanding            |   |                             | 17,076,724                                                       |   |   |   | 17,044,711 |   |   |   | 17,146,914 |   |   |   | 17,911,587 |   |   |   | 18,609,839 |   |
| Shareowners of Record(1)                      |   |                             | 1,768                                                            |   |   |   | 1,778 |   |   |   | 1,756 |   |   |   | 1,750 |   |   |   | 1,805 |   |
| Banking Locations(1)                          |   |                             | 70                                                               |   |   |   | 70 |   |   |   | 68 |   |   |   | 70 |   |   |   | 69 |   |
| Full-Time Equivalent Associates(1)            |   |                             | 975                                                              |   |   |   | 1,006 |   |   |   | 1,042 |   |   |   | 1,097 |   |   |   | 1,056 |   |

| (1) | As of record date.  The record date is on or about March 1st of the following year. |
|-----|-----------------------------------------------------------------------------------------------|

|   | NM – Not Meaningful |
|--------|---------------------------|

----

| Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------|

|                                                  |   | For the Years Ended December 31, |   |   |
|-------------------------------------------------------|--------|----------------------------------|--------|--------|
|                                                  |   | 2010                             |   |   | 2009 |   |   | 2008 |
| Efficiency ratio                                      |   |                             | 85.95  | %      |   |   | 79.77 | % |   |   | 68.09 | % |
| Effect of intangible amortization and merger expenses |   |                             | (1.72  | )%     |   |   | (2.44 | )% |   |   | (3.19 | )% |
| Operating efficiency ratio                            |   |                             | 84.23  | %      |   |   | 77.33 | % |   |   | 64.91 | % |

----

----

| ·   | For 2010, tax equivalent net interest income declined $9.3 million, or 8.5%, to $99.0 million due to a reduction in loan balances, lower earning asset yields, and higher level of foregone interest and lower loan fees, partially offset by a lower cost of funds for deposits.  Our net interest margin of 4.32% for 2010 was 64 basis points lower than 2009 reflecting an unfavorable shift in the mix of our earning assets and lower yields.  Throughout the year, we managed our deposit mix and pricing to offset the lower earning asset yields and began deploying excess liquidity into the higher yielding investment portfolio. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | We recorded a loan loss provision of $23.8 million for 2010 compared to $40.0 million in 2009 reflecting a lower level of impaired loans, a slowing of problem loan inflow, and other stabilizing trends within our loan portfolio.  Costs related to our other real estate owned (“OREO”) properties were a significant driver of our performance in 2010 and totaled $14.9 million versus $7.6 million in 2009, which reflects an increase in properties owned, their related carrying costs, and periodic valuation write-downs. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | For the full year 2010, noninterest income declined $0.6 million, or 1.0%, from 2009 primarily attributable to lower deposit fees of $1.6 million.  The reduction in deposit fees reflects a lower level of overdraft fees attributable to current economic conditions and a higher level of consumer awareness, which has impacted consumer and business spending habits, as well as the recent implementation of new rules under Regulation E.  Overall, the impact of Regulation E was not as significant as expected. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Noninterest expense increased $1.8 million, or 1.4% in 2010 due primarily to higher expense for OREO properties of $7.3 million and FDIC insurance costs of $1.2 million, which was partially offset by lower expense for compensation of $2.3 million, printing and supplies of $0.4 million, advertising of $0.4 million, intangible amortization expense of $1.4 million, professional fees of $0.2 million, interchange fees of $1.0 million, and the impact of reversing our Visa litigation reserve of $0.8 million. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Average earning assets for 2010 were approximately $2.294 billion, representing an increase of $110.0 million, or 5.0%, over 2009 funded by deposit growth of $199.9 million, or 10.0%, reflecting our efforts to further build our core deposit franchise.  The overall mix of earning assets changed year over year as loan balances declined by $132.8 million attributable to soft loan demand and the impact of loans migrating to OREO status as well as loan charge-offs. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We maintained a strong funds sold position during 2010 due to average deposit growth of approximately $200.0 million for the year and the impact of soft loan demand and loan portfolio run-off.  A portion of our funds sold position was deployed into the investment portfolio during the second half of the year. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Nonperforming assets totaled $145.3 million at year-end 2010, slightly higher than our year-end 2009 total of $144.1 million.  During the year, nonperforming assets reached a high of $153.7 million at the end of the first quarter, and declined gradually for the remainder of the year reflecting our significant resources allocated to resolution efforts as well as improvement in market activity. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our allowance for loan losses at year-end 2010 was $35.4 million (2.01% of loans) and provided coverage of 41% of nonperforming loans compared to $44.0 million (2.30% of loans) and 41% of nonperforming loans at year-end 2009. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Shareowners’ equity declined by $8.9 million from $267.9 million at December 31, 2009 to $259.0 million at December 31, 2010.  We continue to maintain a strong capital base as evidenced by a risk based capital ratio of 14.59% and a tangible common equity ratio of 6.82% compared to 14.11% and 6.84%, respectively, at year-end 2009.  Despite challenging market conditions, we paid cash dividends totaling $8.4 million, or $0.49 per share, in 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                |   | For the Years Ended December 31, |    |
|-----------------------------------------------------|--------|----------------------------------|---------|
| (Dollars in Thousands, Except Per Share Data)       |   | 2010                             |    |   | 2009 |   |   | 2008 |   |
| Interest Income                                     |   | $                                | 110,495 |   |   | $ | 122,776 |   |   | $ | 142,866 |   |
| Taxable Equivalent Adjustments                      |   |                             | 1,447   |   |   |   | 2,296 |   |   |   | 2,482 |   |
| Total Interest Income (FTE)                         |   |                             | 111,942 |   |   |   | 125,072 |   |   |   | 145,348 |   |
| Interest Expense                                    |   |                             | 12,962  |   |   |   | 16,842 |   |   |   | 34,000 |   |
| Net Interest Income (FTE)                           |   |                             | 98,980  |   |   |   | 108,230 |   |   |   | 111,348 |   |
| Provision for Loan Losses                           |   |                             | 23,824  |   |   |   | 40,017 |   |   |   | 32,496 |   |
| Taxable Equivalent Adjustments                      |   |                             | 1,447   |   |   |   | 2,296 |   |   |   | 2,482 |   |
| Net Interest Income After Provision for Loan Losses |   |                             | 73,709  |   |   |   | 65,917 |   |   |   | 76,370 |   |
| Noninterest Income                                  |   |                             | 56,825  |   |   |   | 57,391 |   |   |   | 67,040 |   |
| Noninterest Expense                                 |   |                             | 133,916 |   |   |   | 132,115 |   |   |   | 121,472 |   |
| (Loss) Income Before Income Taxes                   |   |                             | (3,382  | ) |   |   | (8,807 | ) |   |   | 21,938 |   |
| Income Tax (Benefit) Expense                        |   |                             | (2,969  | ) |   |   | (5,336 | ) |   |   | 6,713 |   |
| Net (Loss) Income                                   |   | $                                | (413    | ) |   | $ | (3,471 | ) |   | $ | 15,225 |   |
|                                                |   |                             |    |   |   |   |   |   |   |   |   |   |
| Basic Net (Loss) Income Per Share                   |   | $                                | (0.02   | ) |   | $ | (0.20 | ) |   | $ | 0.89 |   |
| Diluted Net (Loss) Income Per Share                 |   | $                                | (0.02   | ) |   | $ | (0.20 | ) |   | $ | 0.89 |   |

----

----

|                                              |   | 2010    |      | 2009     |   | 2008    |   |
|---------------------------------------------------|--------|---------|-----------|----------|--------|---------|--------|
| (Taxable Equivalent Basis - Dollars in Thousands) |   | Balance |      | Interest |   | Rate    |   | Balance |   | Interest |   | Rate |   | Balance |   | Interest |   | Rate |   |
| ASSETS                                            |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, Net of Unearned Interest(1)(2)             |   | $       | 1,829,193 |     | $      | 106,342 |   |   | 5.81 | % | $ | 1,961,990 |   | $ | 118,186 |   |   | 6.02 | % | $ | 1,918,417 |   | $ | 133,457 |   |   | 6.96 | % |
| Taxable Investment Securities                     |   |    | 126,078   |     |   | 2,681   |   |   | 2.12 |   |   | 83,648 |   |   | 2,698 |   |   | 3.22 |   |   | 93,149 |   |   | 3,889 |   |   | 5.04 |   |
| Tax-Exempt Investment Securities(2)               |   |    | 90,352    |     |   | 2,332   |   |   | 2.58 |   |   | 105,683 |   |   | 4,106 |   |   | 3.88 |   |   | 97,010 |   |   | 4,893 |   |   | 4.16 |   |
| Funds Sold                                        |   |    | 248,659   |     |   | 587     |   |   | 0.23 |   |   | 32,911 |   |   | 82 |   |   | 0.25 |   |   | 132,073 |   |   | 3,109 |   |   | 2.32 |   |
| Total Earning Assets                              |   |    | 2,294,282 |     |   | 111,942 |   |   | 4.88 | % |   | 2,184,232 |   |   | 125,072 |   |   | 5.73 | % |   | 2,240,649 |   |   | 145,348 |   |   | 6.48 | % |
| Cash & Due From Banks                         |   |    | 51,883    |     |   |    |   |   |   |   |   | 76,107 |   |   |   |   |   |   |   |   | 82,410 |   |   |   |   |   |   |   |
| Allowance for Loan Losses                         |   |    | (40,717   | )        |   |    |   |   |   |   |   | (42,331 | ) |   |   |   |   |   |   |   | (23,015 | ) |   |   |   |   |   |   |
| Other Assets                                      |   |    | 339,283   |     |   |    |   |   |   |   |   | 298,807 |   |   |   |   |   |   |   |   | 267,861 |   |   |   |   |   |   |   |
| TOTAL ASSETS                                      |   | $       | 2,644,731 |     |   |    |   |   |   |   | $ | 2,516,815 |   |   |   |   |   |   |   | $ | 2,567,905 |   |   |   |   |   |   |   |
|                                              |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES                                       |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW Accounts                                      |   | $       | 863,719   |     | $      | 1,406   |   |   | 0.16 | % | $ | 711,753 |   | $ | 1,039 |   |   | 0.15 | % | $ | 743,327 |   | $ | 7,454 |   |   | 1.00 | % |
| Money Market Accounts                             |   |    | 320,786   |     |   | 1,299   |   |   | 0.41 |   |   | 320,531 |   |   | 1,288 |   |   | 0.40 |   |   | 374,278 |   |   | 5,242 |   |   | 1.40 |   |
| Savings Accounts                                  |   |    | 131,945   |     |   | 65      |   |   | 0.05 |   |   | 121,582 |   |   | 60 |   |   | 0.05 |   |   | 116,413 |   |   | 121 |   |   | 0.10 |   |
| Other Time Deposits                               |   |    | 413,428   |     |   | 5,875   |   |   | 1.42 |   |   | 420,198 |   |   | 8,198 |   |   | 1.95 |   |   | 424,748 |   |   | 14,489 |   |   | 3.41 |   |
| Total Interest Bearing Deposits                   |   |    | 1,729,878 |     |   | 8,645   |   |   | 0.50 | % |   | 1,574,064 |   |   | 10,585 |   |   | 0.67 | % |   | 1,658,766 |   |   | 27,306 |   |   | 1.65 | % |
| Short-Term Borrowings                             |   |    | 27,864    |     |   | 159     |   |   | 0.57 |   |   | 79,321 |   |   | 291 |   |   | 0.36 |   |   | 61,181 |   |   | 1,157 |   |   | 1.88 |   |
| Subordinated Notes Payable                        |   |    | 62,887    |     |   | 2,008   |   |   | 3.15 |   |   | 62,887 |   |   | 3,730 |   |   | 5.85 |   |   | 62,887 |   |   | 3,735 |   |   | 5.84 |   |
| Other Long-Term Borrowings                        |   |    | 51,767    |     |   | 2,150   |   |   | 4.15 |   |   | 51,973 |   |   | 2,236 |   |   | 4.30 |   |   | 39,735 |   |   | 1,802 |   |   | 4.54 |   |
| Total Interest Bearing Liabilities                |   |    | 1,872,396 |     |   | 12,962  |   |   | 0.69 | % |   | 1,768,245 |   |   | 16,842 |   |   | 0.95 | % |   | 1,822,569 |   |   | 34,000 |   |   | 1.87 | % |
| Noninterest Bearing Deposits                      |   |    | 462,445   |     |   |    |   |   |   |   |   | 418,365 |   |   |   |   |   |   |   |   | 407,299 |   |   |   |   |   |   |   |
| Other Liabilities                                 |   |    | 45,211    |     |   |    |   |   |   |   |   | 54,660 |   |   |   |   |   |   |   |   | 37,147 |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                 |   |    | 2,380,052 |     |   |    |   |   |   |   |   | 2,241,270 |   |   |   |   |   |   |   |   | 2,267,015 |   |   |   |   |   |   |   |
|                                              |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHAREOWNERS' EQUITY                               |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL SHAREOWNERS' EQUITY                         |   |    | 264,679   |     |   |    |   |   |   |   |   | 275,545 |   |   |   |   |   |   |   |   | 300,890 |   |   |   |   |   |   |   |
|                                              |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES & EQUITY                    |   | $       | 2,644,731 |     |   |    |   |   |   |   | $ | 2,516,815 |   |   |   |   |   |   |   | $ | 2,567,905 |   |   |   |   |   |   |   |
|                                              |   |    |      |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Rate Spread                              |   |    |      |     |   |    |   |   | 4.19 | % |   |   |   |   |   |   |   | 4.78 | % |   |   |   |   |   |   |   | 4.61 | % |
| Net Interest Income                               |   |    |      |     | $      | 98,980  |   |   |   |   |   |   |   | $ | 108,230 |   |   |   |   |   |   |   | $ | 111,348 |   |   |   |   |
| Net Interest Margin(3)                            |   |    |      |     |   |    |   |   | 4.32 | % |   |   |   |   |   |   |   | 4.96 | % |   |   |   |   |   |   |   | 4.96 | % |

| (1) | Average balances include nonaccrual loans.  Interest income includes loan fees of $1.5 million, $1.6 million, and $2.3 million in 2010, 2009, and 2008, respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Interest income includes the effects of taxable equivalent adjustments using a 35% tax rate. |
|-----|----------------------------------------------------------------------------------------------|

| (3) | Taxable equivalent net interest income divided by average earning assets. |
|-----|---------------------------------------------------------------------------|

----

|                                              |   |  2010 Changes From 2009 |                              | 2009 Changes From 2008 |
|---------------------------------------------------|--------|------------------------------|-----------------------------------|------------------------|
|                                              |   |                         |     Due to Average |                   |   |   |   |   |   | Due to Average |
| (Taxable Equivalent Basis - Dollars in Thousands) |   |  Total                  |                              | Calendar(3)            | Volume |   | Rate |   | Total |   |   | Calendar(3) |   |   | Volume |   |   | Rate |
| Earnings Assets:                                  |   |                         |                              |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, Net of Unearned Interest(2)                | $      | (11,844                      | )                                 | $                      | - | $ | (7,362 | ) | $ | (4,482 | ) | $ | (15,271 | ) | $ | (365) |   | $ | 2,491 |   |   | $ | (17,397 | ) |
| Investment Securities:                            |   |                         |                              |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                           |   | (17                          | )                            |                   | - |   | 753 |   |   | (770 | ) |   | (1,191 | )  |   | (11 | )  |   | (483 | ) |   |   | (697 | ) |
| Tax-Exempt(2)                                     |   | (1,774                       | )                                 |                   | - |   | (596 | )  |   | (1,178 | ) |   | (787 | ) |   | (13 | )  |   | 439 |   |   |   | (1,213 | ) |
| Funds Sold                                        |   | 505                          |                              |                   | - |   | 536 |   |   | (31 | )  |   | (3,027 | )  |   | (8 | )  |   | (2,368 | )  |   |   | (651 | )  |
|                                              |   |                         |                              |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                             |   | (13,130                      | )                            |                   | - |   | (6,669 | )  |   | (6,461 | )  |   | (20,276 | )  |   | (397 | )  |   | 79 |   |   |   | (19,958 | )  |
|                                              |   |                         |                              |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Bearing Liabilities:                     |   |                         |                              |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW Accounts                                      |   | 366                          |                              |                   | - |   | 222 |   |   | 144 |   |   | (6,415 | )  |   | (21 | )  |   | (316 | )  |   |   | (6,078 | )  |
| Money Market Accounts                             |   | 12                           |                              |                   | - |   | 1 |   |   | 11 |   |   | (3,954 | )  |   | (14 | )  |   | (753 | ) |   |   | (3,187 | )  |
| Savings Accounts                                  |   | 5                            |                              |                   | - |   | 5 |   |   | - |   |   | (61 | )  |   | - |   |   | 4 |   |   |   | (65 | )  |
| Time Deposits                                     |   | (2,323                       | )                            |                   | - |   | (132 | ) |   | (2,191 | )  |   | (6,291 | )  |   | (40 | )  |   | (155 | ) |   |   | (6,096 | )  |
| Short-Term Borrowings                             |   | (132                         | )                            |                   | - |   | (218 | ) |   | 86 |   |   | (866 | )  |   | (3 | )  |   | 227 |   |   |   | (1,090 | )  |
| Subordinated Notes Payable                        |   | (1,722                       | )                            |                   | - |   | - |   |   | (1,722 | ) |   | (5 | )  |   | (10 | )  |   | - |   |   |   | 5 |   |
| Long-Term Borrowings                              |   | (86                          | )                            |                   | - |   | (9 | )  |   | (77 | ) |   | 434 |   |   | (5 | )  |   | 555 |   |   |   | (116 | ) |
|                                              |   |                         |                              |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                             |   | (3,880                       | )                            |                   | - |   | (131 | )  |   | (3,749 | )  |   | (17,158 | )  |   | (93 | )  |   | (438) |   |   |   | (16,627 | )  |
|                                              |   |                         |                              |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Changes in Net Interest Income                    | $      | (9,250                       | )                                 | $                      | - | $ | (6,538 | )  | $ | (2,712 | )  | $ | (3,118 | ) | $ | (304 | )  | $ | 517 |   |   | $ | (3,331 | )  |

| (1) | This table shows the change in taxable equivalent net interest income for comparative periods based on either changes in average volume or changes in average rates for earning assets and interest bearing liabilities. Changes which are not solely due to volume changes or solely due to rate changes have been attributed to rate changes. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Interest income includes the effects of taxable equivalent adjustments using a 35% tax rate to adjust interest on tax-exempt loans and securities to a taxable equivalent basis. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Reflects difference in 365 day year (2010 and 2009) versus 366 day year (2008). |
|-----|---------------------------------------------------------------------------------|

----

|                                                   |   | For the Years Ended December 31, |   |
|--------------------------------------------------------|--------|----------------------------------|--------|
| (Dollars in Thousands)                                 |   | 2010                             |   |   | 2009 |   |   | 2008 |   |
| Noninterest Income:                                    |   |                             |   |   |   |   |   |   |   |
| Service Charges on Deposit Accounts                    |   | $                                | 26,500 |   |   | $ | 28,142 |   |   | $ | 27,742 |   |
| Data Processing Fees                                   |   |                             | 3,610  |   |   |   | 3,628 |   |   |   | 3,435 |   |
| Asset Management Fees                                  |   |                             | 4,235  |   |   |   | 3,925 |   |   |   | 4,235 |   |
| Retail Brokerage Fees                                  |   |                             | 2,820  |   |   |   | 2,655 |   |   |   | 2,399 |   |
| Securities Transactions                                |   |                             | 8      |   |   |   | 10 |   |   |   | 125 |   |
| Mortgage Banking Fees                                  |   |                             | 2,948  |   |   |   | 2,699 |   |   |   | 1,623 |   |
| Interchange Fees(1)                                    |   |                             | 5,077  |   |   |   | 4,432 |   |   |   | 4,165 |   |
| Gain on Sale of Portion of Merchant Services Portfolio |   |                             | -      |   |   |   | - |   |   |   | 6,250 |   |
| ATM/Debit Card Fees(1)                                 |   |                             | 4,123  |   |   |   | 3,515 |   |   |   | 2,988 |   |
| Other                                                  |   |                             | 7,504  |   |   |   | 8,385 |   |   |   | 14,078 |   |
| Total Noninterest Income                               |   | $                                | 56,825 |   |   | $ | 57,391 |   |   | $ | 67,040 |   |

----

----

|                      |   | For the Years Ended December 31, |    |
|---------------------------|--------|----------------------------------|---------|
| (Dollars in Thousands)    |   | 2010                             |    |   | 2009 |   |   | 2008 |   |
| Noninterest Expense:      |   |                             |    |   |   |   |   |   |   |
| Salaries                  |   | $                                | 50,102  |   |   | $ | 50,494 |   |   | $ | 50,581 |   |
| Associate Benefits        |   |                             | 12,653  |   |   |   | 14,573 |   |   |   | 11,250 |   |
| Total Compensation        |   |                             | 62,755  |   |   |   | 65,067 |   |   |   | 61,831 |   |
|                      |   |                             |    |   |   |   |   |   |   |   |   |   |
| Premises                  |   |                             | 10,010  |   |   |   | 9,798 |   |   |   | 9,729 |   |
| Equipment                 |   |                             | 8,929   |   |   |   | 9,096 |   |   |   | 9,902 |   |
| Total Occupancy           |   |                             | 18,939  |   |   |   | 18,894 |   |   |   | 19,631 |   |
|                      |   |                             |    |   |   |   |   |   |   |   |   |   |
| Legal Fees                |   |                             | 4,301   |   |   |   | 3,975 |   |   |   | 2,240 |   |
| Professional Fees         |   |                             | 4,338   |   |   |   | 4,501 |   |   |   | 4,083 |   |
| Processing Services       |   |                             | 3,651   |   |   |   | 3,591 |   |   |   | 3,921 |   |
| Advertising               |   |                             | 2,905   |   |   |   | 3,285 |   |   |   | 3,609 |   |
| Travel and Entertainment  |   |                             | 958     |   |   |   | 1,123 |   |   |   | 1,390 |   |
| Printing and Supplies     |   |                             | 1,455   |   |   |   | 1,882 |   |   |   | 1,977 |   |
| Telephone                 |   |                             | 2,059   |   |   |   | 2,227 |   |   |   | 2,522 |   |
| Postage                   |   |                             | 1,650   |   |   |   | 1,711 |   |   |   | 1,743 |   |
| FDIC Insurance Fees       |   |                             | 6,324   |   |   |   | 5,167 |   |   |   | 1,304 |   |
| Intangible Amortization   |   |                             | 2,682   |   |   |   | 4,042 |   |   |   | 5,685 |   |
| Interchange Fees          |   |                             | 955     |   |   |   | 1,929 |   |   |   | 4,577 |   |
| Other Real Estate Owned   |   |                             | 14,922  |   |   |   | 7,577 |   |   |   | 1,306 |   |
| Miscellaneous             |   |                             | 6,022   |   |   |   | 7,144 |   |   |   | 5,653 |   |
| Total Other               |   |                             | 52,222  |   |   |   | 48,154 |   |   |   | 40,010 |   |
|                      |   |                             |    |   |   |   |   |   |   |   |   |   |
| Total Noninterest Expense |   | $                                | 133,916 |   |   | $ | 132,115 |   |   | $ | 121,472 |   |

----

----

|                                                     |   | 2009 to |     |    | Percentage |   |                    | Components of                    |   |
|----------------------------------------------------------|--------|---------|----------|---------|------------|--------|-------------------------|----------------------------------|--------|
|                                                     |   | 2010    |     |    | Total      |   |                    | Average Earning Assets |   |
| (Average Balances – Dollars In Thousands)          |   | Change  |     |    | Change     |   |                    | 2010                             |   |   | 2009 |   |   | 2008 |   |
|                                                     |   |    |     |    |       |   |                    |                             |   |   |   |   |   |   |   |
| Loans:                                                   |   |    |     |    |       |   |                    |                             |   |   |   |   |   |   |   |
|   Commercial, Financial, and Agricultural      |   |  $ | (34,847  | )  |       |   |    (32.0 | )%                               |   |   |     7.2 | % |   |   | 9.1 | % |   |   | 8.8 | % |
|   Real Estate – Construction             |   |    | (75,255  | )       |       |   | (68.0                   | )                                |   |   | 2.8 |   |   |   | 6.4 |   |   |   | 6.6 |   |
|   Real Estate – Commercial               |   |    | 7,190    |    |       |   | 7.0                     |                             |   |   | 30.3 |   |   |   | 31.5 |   |   |   | 28.0 |   |
|   Real Estate – Residential              |   |    | (18,208  | )       |       |   | (17.0                   | )                                |   |   | 19.1 |   |   |   | 31.6 |   |   |   | 31.1 |   |
|   Real Estate – Home Equity              |   |    | 14,405   |    |       |   | 13.0                    |                             |   |   | 10.8 |   |   |   | 31.5 |   |   |   | 28.0 |   |
| Consumer                                                 |   |    | (26,083  | )       |       |   | (25.0                   | )                                |   |   | 9.5 |   |   |   | 11.2 |   |   |   | 11.1 |   |
|     Total Loans                      |   |  $ | (132,798 | )       |       |   | (122.0                  | )%                               |   |   | 79.7 | % |   |   | 89.8 | % |   |   | 85.6 | % |
|                                                     |   |    |     |    |       |   |                    |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment Securities:                                   |   |    |     |    |       |   |                    |                             |   |   |   |   |   |   |   |   |   |   |   |   |
|   Taxable                                      |   |  $ | 42,430   |    |       |   | 39.0                    | %                                |   |   | 5.5 | % |   |   | 3.8 | % |   |   | 4.2 | % |
|   Tax-Exempt                                   |   |    | (15,331  | )  |       |   | (14.0                   | )                                |   |   | 4.0 |   |   |   | 4.9 |   |   |   | 4.3 |   |
|     Total Securities                 |   |    | 27,099   |    |       |   | 25.0                    | %                                |   |   | 9.5 | % |   |   | 8.7 | % |   |   | 8.5 | % |
|                                                     |   |    |     |    |       |   |                    |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Funds Sold                                               |   |    | 215,748  |    |       |   | 197.0                   | %                                |   |   | 10.8 | % |   |   | 1.5 | % |   |   | 5.9 | % |
|                                                     |   |    |     |    |       |   |                    |                             |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total Earning Assets |   | $       | 110,049  |    |       |   | 100.0                   | %                                |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |

----

|                                    |   | As of December 31, |      |
|-----------------------------------------|--------|--------------------|-----------|
| (Dollars in Thousands)                  |   | 2010               |      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Commercial, Financial and Agricultural  |   | $                  | 157,394   |   |   | $ | 189,061 |   |   | $ | 206,230 |   |   | $ | 208,864 |   |   | $ | 229,327 |   |
| Real Estate - Construction              |   |               | 43,239    |   |   |   | 111,249 |   |   |   | 141,973 |   |   |   | 142,248 |   |   |   | 179,072 |   |
| Real Estate – Commercial Mortgage |   |               | 671,702   |   |   |   | 716,791 |   |   |   | 656,959 |   |   |   | 634,920 |   |   |   | 643,885 |   |
| Real Estate - Residential               |   |               | 430,541   |   |   |   | 416,469 |   |   |   | 484,238 |   |   |   | 488,372 |   |   |   | 536,138 |   |
| Real Estate – Home Equity         |   |               | 251,565   |   |   |   | 246,722 |   |   |   | 218,500 |   |   |   | 192,428 |   |   |   | 173,597 |   |
| Consumer                                |   |               | 204,230   |   |   |   | 235,648 |   |   |   | 249,897 |   |   |   | 249,018 |   |   |   | 237,702 |   |
| Total Loans, Net of Unearned Interest   |   | $                  | 1,758,671 |   |   | $ | 1,915,940 |   |   | $ | 1,957,797 |   |   | $ | 1,915,850 |   |   | $ | 1,999,721 |   |

|                                    |   | Maturity Periods |                                             |
|-----------------------------------------|--------|------------------|--------------------------------------------------|
| (Dollars in Thousands)                  |   | One Yearor Less  |                                             |   | Over OneThroughFive Years |   |   | OverFiveYears |   |   | Total |   |
| Commercial, Financial and Agricultural  |   | $                |        66,834 |   |   | $ | 63,188 |   |   | $ | 14,159 |   |   | $ | 144,181 |   |
| Real Estate – Construction        |   |             | 39,641                                           |   |   |   | 888 |   |   |   | 2,711 |   |   |   | 43,240 |   |
| Real Estate – Commercial Mortgage |   |             | 142,279                                          |   |   |   | 116,998 |   |   |   | 425,637 |   |   |   | 684,914 |   |
| Real Estate – Residential         |   |             | 91,589                                           |   |   |   | 56,251 |   |   |   | 282,701 |   |   |   | 430,541 |   |
| Real Estate – Home Equity         |   |             | 829                                              |   |   |   | 7,977 |   |   |   | 242,759 |   |   |   | 251,565 |   |
| Consumer(1)                             |   |             | 22,158                                           |   |   |   | 145,544 |   |   |   | 36,528 |   |   |   | 204,230 |   |
| Total                                   |   | $                | 363,330                                          |   |   | $ | 390,846 |   |   | $ | 1,004,495 |   |   | $ | 1,758,671 |   |
|                                    |   |             |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans with Fixed Rates                  |   | $                | 136,751                                          |   |   | $ | 302,792 |   |   | $ | 157,592 |   |   | $ | 597,135 |   |
| Loans with Floating or Adjustable Rates |   |             | 226,579                                          |   |   |   | 88,054 |   |   |   | 846,903 |   |   |   | 1,161,536 |   |
| Total                                   |   | $                | 363,330                                          |   |   | $ | 390,846 |   |   | $ | 1,004,495 |   |   | $ | 1,758,671 |   |

|  (1) | Demand loans and overdrafts are reported in the category of one year or less. |
|-----------|-------------------------------------------------------------------------------|

----

|                                              | As of December 31, |    |
|---------------------------------------------------|--------------------|---------|
| (Dollars in Thousands)                            | 2010               |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                              |               |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonaccruing Loans                                 | $                  | 65,700  |   |   |  $ | 86,274 |   |   |     $ | 96,876 |   |   | $ | 25,119 |   |   | $ | 8,042 |   |
| Troubled Debt Restructurings                      |               | 21,649  |   |   |   | 21,644 |   |   |   | 1,744 |   |   |   | - |   |   |   | - |   |
| Total Nonperforming Loans                         |               | 87,349  |   |   |   | 107,918 |   |   |   | 98,620 |   |   |   | 25,119 |   |   |   | 8,042 |   |
| Other Real Estate Owned                           |               | 57,937  |   |   |   | 36,134 |   |   |   | 9,222 |   |   |   | 3,043 |   |   |   | 689 |   |
| Total Nonperforming Assets                        | $                  | 145,286 |   |   | $ | 144,052 |   |   | $ | 107,842 |   |   | $ | 28,162 |   |   | $ | 8,731 |   |
| Past Due Loans 30 – 89 Days                 |               | 24,193  |   |   |   | 36,501 |   |   |   | 37,343 |   |   |   | 28,157 |   |   |   | 20,917 |   |
| Past Due Loans 90 Days or More (accruing)         | $             | 159     |   |   | $ | - |   |   | $ | 88 |   |   | $ | 416 |   |   | $  | 135 |   |
|                                              |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonperforming Loans/Loans                         |               | 4.97    | % |   |   | 5.63 | % |   |   | 5.04 | % |   |   | 1.31 | % |   |   | 0.40 | % |
| Nonperforming Assets/Loans Plus Other Real Estate |               | 8.00    |   |   |   | 7.38 |   |   |   | 5.48 |   |   |   | 1.47 |   |   |   | 0.44 |   |
| Nonperforming Assets/Capital(1)                   |               | 49.34   |   |   |   | 46.19 |   |   |   | 34.15 |   |   |   | 9.06 |   |   |   | 2.62 |   |
| Allowance/Nonperforming Loans                     |               | 40.57   | % |   |   | 40.77 | % |   |   | 37.52 | % |   |   | 71.92 | % |   |   | 214.09 | % |

| (1) | For computation of this percentage, "Capital" refers to shareowners' equity plus the allowance for loan losses. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (Dollars in Thousands)                 | 2010   |   | 2009   |   |
|----------------------------------------|--------|--------|--------|--------|
| Commercial, Financial and Agricultural | $      | 1,059  |   | $      | 2,729 |   |
| Real Estate - Construction             |   | 1,907  |   |   | 20,797 |   |
| Real Estate - Commercial Mortgage      |   | 26,874 |   |   | 29,042 |   |
| Real Estate -  Residential   |   | 30,189 |   |   | 26,599 |   |
| Real Estate - Home Equity              |   | 4,803  |   |   | 5,280 |   |
| Consumer                               |   | 868    |   |   | 1,827 |   |
| Total Nonaccrual Loans                 | $      | 65,700 |   | $      | 86,274 |   |

----

| (Dollars in Thousands)                 |   | 2010   |   |   | 2009   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
| Commercial, Financial and Agricultural |   | $      | 768    |   |   | $      | 469 |   |
| Real Estate - Construction             |   |   | 660    |   |   |   | 3,357 |   |
| Real Estate - Commercial Mortgage      |   |   | 10,635 |   |   |   | 9,179 |   |
| Real Estate -  Residential   |   |   | 8,884  |   |   |   | 8,438 |   |
| Real Estate - Home Equity              |   |   | 648    |   |   |   | 166 |   |
| Consumer                               |   |   | 54     |   |   |   | 35 |   |
| Total TDR’s                      |   | $      | 21,649 |   |   | $      | 21,644 |   |

| (Dollars in Thousands) |   | 2010   |   |   | 2009   |   |
|------------------------|--------|--------|--------|--------|--------|--------|
| Lots/Land              |   | $      | 33,923 |   |   | $      | 27,258 |   |
| Residential 1-4        |   |   | 14,092 |   |   |   | 7,065 |   |
| Commercial Building    |   |   | 8,209  |   |   |   | 1,534 |   |
| Other                  |   |   | 1,713  |   |   |   | 277 |   |
| Total OREO             |   | $      | 57,937 |   |   | $      | 36,134 |   |

----

----

|                                                           | For the Years Ended December 31, |   |
|----------------------------------------------------------------|----------------------------------|--------|
| (Dollars in Thousands)                                         | 2010                             |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                           |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at Beginning of Year                                   | $                                | 43,999 |   |   | $ | 37,004 |   |   | $ | 18,066 |   |   | $ | 17,217 |   |   | $ | 17,410 |   |
| Reclassification of Unfunded Reserve to Other Liability        |                             | -      |   |   |   | 392 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                           |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charge-Offs:                                                   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, Financial and Agricultural                         |                             | 2,118  |   |   |   | 2,590 |   |   |   | 1,649 |   |   |   | 1,462 |   |   |   | 841 |   |
| Real Estate - Construction                                     |                             | 5,877  |   |   |   | 8,031 |   |   |   | 2,581 |   |   |   | 166 |   |   |   | - |   |
| Real Estate - Commercial                                       |                             | 8,762  |   |   |   | 4,417 |   |   |   | 1,499 |   |   |   | 709 |   |   |   | 346 |   |
| Real Estate - Residential                                      |                             | 12,168 |   |   |   | 13,491 |   |   |   | 3,787 |   |   |   | 407 |   |   |   | 260 |   |
| Real Estate - Home Equity                                      |                             | 3,087  |   |   |   | 1,632 |   |   |   | 267 |   |   |   | 1,022 |   |   |   | 20 |   |
| Consumer                                                       |                             | 3,502  |   |   |   | 5,912 |   |   |   | 6,192 |   |   |   | 3,451 |   |   |   | 2,516 |   |
| Total Charge-Offs                                              |                             | 36,514 |   |   |   | 36,073 |   |   |   | 15,975 |   |   |   | 7,217 |   |   |   | 3,983 |   |
|                                                           |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                                    |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial, Financial and Agricultural                         |                             | 370    |   |   |   | 567 |   |   |   | 331 |   |   |   | 174 |   |   |   | 246 |   |
| Real Estate - Construction                                     |                             | 8      |   |   |   | 540 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |
| Real Estate - Commercial                                       |                             | 261    |   |   |   | 53 |   |   |   | 15 |   |   |   | 14 |   |   |   | 17 |   |
| Real Estate - Residential                                      |                             | 385    |   |   |   | 525 |   |   |   | 161 |   |   |   | 34 |   |   |   | 11 |   |
| Real Estate - Home Equity                                      |                             | 555    |   |   |   | 5 |   |   |   | 1 |   |   |   | 2 |   |   |   | - |   |
| Consumer                                                       |                             | 1,548  |   |   |   | 1,753 |   |   |   | 1,905 |   |   |   | 1,679 |   |   |   | 1,557 |   |
| Total Recoveries                                               |                             | 3,127  |   |   |   | 3,443 |   |   |   | 2,417 |   |   |   | 1,903 |   |   |   | 1,831 |   |
|                                                           |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Charge-Offs                                                |                             | 32,387 |   |   |   | 32,630 |   |   |   | 13,558 |   |   |   | 5,314 |   |   |   | 2,152 |   |
|                                                           |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for Loan Losses                                      |                             | 23,824 |   |   |   | 40,017 |   |   |   | 32,496 |   |   |   | 6,163 |   |   |   | 1,959 |   |
|                                                           |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at End of Year                                         | $                                | 35,436 |   |   | $ | 43,999 |   |   | $ | 37,004 |   |   | $ | 18,066 |   |   | $ | 17,217 |   |
|                                                           |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of Net Charge-Offs to Average Loans Outstanding          |                             | 1.77   | % |   |   | 1.66 | % |   |   | 0.71 | % |   |   | 0.27 | % |   |   | 0.11 | % |
|                                                           |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses as a Percent of Loans at End of Year |                             | 2.01   | % |   |   | 2.30 | % |   |   | 1.89 | % |   |   | 0.94 | % |   |   | 0.86 | % |
|                                                           |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses as a Multiple of Net Charge-Offs     |                             | 1.09   | x |   |   | 1.35 | x |   |   | 2.73 | x |   |   | 3.40 | x |   |   | 8.00 | x |

----

|                                   | 2010            |   | 2009                                        |   | 2008            |   | 2007                                        |   | 2006            |                                        |
|----------------------------------------|-----------------|--------|---------------------------------------------|--------|-----------------|--------|---------------------------------------------|--------|-----------------|---------------------------------------------|
| (Dollars in Thousands)                 | AllowanceAmount |   | Percentof Loansin EachCategoryTo TotalLoans |   | AllowanceAmount |   | Percentof Loansin EachCategoryTo TotalLoans |   | AllowanceAmount | Percentof Loansin EachCategoryTo TotalLoans |   | AllowanceAmount |   | Percentof Loansin EachCategoryTo TotalLoans |   | AllowanceAmount |   | Percentof Loansin EachCategoryTo TotalLoans |   |
|                                   |            |   |                                        |   |            |   |                                        |   |            |                                        |   |   |   |   |   |   |   |   |   |
| Commercial, Financial and Agricultural | $               | 1,544  |                                        | 8.9    | %               |   | $                                           | 2,409  |            | 9.9                                         | % |   | $ | 2,401 |   | 10.5 | % |   | $ | 3,106 |   | 10.9 | % |   | $ | 3,900 |   | 11.5 | % |
| Real Estate:                           |            |   |                                        |   |            |   |                                        |   |            |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Construction         |            | 2,060  |                                        | 2.5    |            |   |                                        | 12,117 |            | 5.8                                         |   |   |   | 8,973 |   | 7.3 |   |   |   | 3,117 |   | 7.4 |   |   |   | 745 |   | 9.0 |   |
|    Commercial           |            | 8,645  |                                        | 38.2   |            |   |                                        | 8,751  |            | 37.4                                        |   |   |   | 6,022 |   | 33.6 |   |   |   | 4,372 |   | 33.1 |   |   |   | 5,996 |   | 32.2 |   |
|    Residential          |            | 17,046 |                                        | 24.5   |            |   |                                        | 14,159 |            | 21.7                                        |   |   |   | 12,489 |   | 24.7 |   |   |   | 3,733 |   | 35.6 |   |   |   | 1,050 |   | 35.5 |   |
|    Home Equity          |            | 2,522  |                                        | 14.3   |            |   |                                        | 2,201  |            | 12.9                                        |   |   |   | 1,091 |   | 11.2 |   |   |   | - |   | - |   |   |   | - |   | - |   |
| Consumer                               |            | 2,612  |                                        | 11.6   |            |   |                                        | 3,457  |            | 12.3                                        |   |   |   | 5,055 |   | 12.8 |   |   |   | 2,790 |   | 13.0 |   |   |   | 3,081 |   | 11.8 |   |
| Not Allocated                          |            | 1,007  |                                        | -      |            |   |                                        | 905    |            | -                                           |   |   |   | 973 |   | - |   |   |   | 948 |   | - |   |   |   | 2,445 |   | - |   |
|                                   |            |   |                                        |   |            |   |                                        |   |            |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                  | $               | 35,436 |                                        | 100.0  | %               |   | $                                           | 43,999 |            | 100.0                                       | % |   | $ | 37,004 |   | 100.0 | % |   | $ | 18,066 |   | 100.0 | % |   | $ | 17,217 |   | 100.0 | % |

----

|                                |   | As of December 31, |    |
|-------------------------------------|--------|--------------------|---------|
|                                |   | 2010               |    | 2009 |   | 2008 |   |
| (Dollars in Thousands)              |   | AmortizedCost      |    | MarketValue |   | Weighted(1)AverageYield |   | AmortizedCost |   | MarketValue |   | Weighted(1)AverageYield |   | AmortizedCost |   | MarketValue |   | Weighted(1)AverageYield |   |
|                                |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. GOVERNMENTS                    |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due in 1 year or less               |   | $                  | 9,050   |   | $ | 9,091 |   |   | 1.64 | % | $ | 11,034 |   | $ | 11,111 |   |   | 2.04 | % | $ | 18,695 |   | $ | 19,033 |   |   | 3.54 | % |
| Due over 1 year through 5 years     |   |               | 151,863 |   |   | 153,060 |   |   | 0.96 |   |   | 11,236 |   |   | 11,333 |   |   | 1.53 |   |   | 17,490 |   |   | 17,909 |   |   | 1.98 |   |
| Due over 5 years through 10 years   |   |               | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Due over 10 years                   |   |               | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| TOTAL                               |   |               | 160,913 |   |   | 162,151 |   |   | 1.00 |   |   | 22,270 |   |   | 22,444 |   |   | 1.78 |   |   | 36,185 |   |   | 36,942 |   |   | 2.79 |   |
|                                |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| STATES & POLITICAL SUBDIVISIONS |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due in 1 year or less               |   |               | 52,987  |   |   | 53,189 |   |   | 1.97 |   |   | 58,987 |   |   | 59,477 |   |   | 3.90 |   |   | 39,277 |   |   | 39,581 |   |   | 5.02 |   |
| Due over 1 year through 5 years     |   |               | 26,003  |   |   | 26,110 |   |   | 1.54 |   |   | 47,468 |   |   | 48,073 |   |   | 2.49 |   |   | 61,093 |   |   | 61,981 |   |   | 4.55 |   |
| Due over 5 years through 10 years   |   |               | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Due over 10 years                   |   |               | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| TOTAL                               |   |               | 78,990  |   |   | 79,299 |   |   | 1.84 |   |   | 106,455 |   |   | 107,550 |   |   | 3.28 |   |   | 100,370 |   |   | 101,562 |   |   | 4.74 |   |
|                                |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| MORTGAGE-BACKED SECURITIES(2)       |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due in 1 year or less               |   |               | 7,377   |   |   | 7,488 |   |   | 3.85 |   |   | 8,400 |   |   | 8,506 |   |   | 3.91 |   |   | 1,258 |   |   | 1,267 |   |   | 3.84 |   |
| Due over 1 year through 5 years     |   |               | 31,717  |   |   | 32,034 |   |   | 2.70 |   |   | 24,742 |   |   | 25,398 |   |   | 4.01 |   |   | 30,803 |   |   | 30,907 |   |   | 4.44 |   |
| Due over 5 years through 10 years   |   |               | 17,005  |   |   | 16,695 |   |   | 2.27 |   |   | 233 |   |   | 239 |   |   | 4.44 |   |   | 1,420 |   |   | 1,426 |   |   | 5.29 |   |
| Due over 10 years                   |   |               | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 6,379 |   |   | 6,476 |   |   | 5.38 |   |
| TOTAL                               |   |               | 56,099  |   |   | 56,217 |   |   | 2.72 |   |   | 33,375 |   |   | 34,143 |   |   | 3.99 |   |   | 39,860 |   |   | 40,076 |   |   | 3.74 |   |
|                                |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER SECURITIES                    |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due in 1 year or less               |   |               | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Due over 1 year through 5 years     |   |               | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Due over 5 years through 10 years   |   |               | -       |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 1,000 |   |   | 1,107 |   |   | 5.00 |   |
| Due over 10 years(3)                |   |               | 12,664  |   |   | 12,064 |   |   | 2.58 |   |   | 12,536 |   |   | 12,536 |   |   | 6.18 |   |   | 11,882 |   |   | 11,882 |   |   | 5.94 |   |
| TOTAL                               |   |               | 12,664  |   |   | 12,064 |   |   | 2.58 |   |   | 12,536 |   |   | 12,536 |   |   | 6.18 |   |   | 12,882 |   |   | 12,989 |   |   | 5.87 |   |
|                                |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL INVESTMENT SECURITIES         |   | $                  | 308,666 |   | $ | 309,731 |   |   | 1.59 | % | $ | 174,636 |   | $ | 176,673 |   |   | 3.43 | % | $ | 189,297 |   | $ | 191,569 |   |   | 4.26 | % |

| (1) | Weighted average yields are calculated on the basis of the amortized cost of the security. The weighted average yields on tax-exempt obligations are computed on a taxable equivalent basis using a 35% tax rate. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Based on weighted average life. |
|-----|---------------------------------|

| (3) | Federal Home Loan Bank Stock and Federal Reserve Bank Stock are included in this category for weighted average yield, but do not have stated maturities. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              |   | As of December 31, |   |
|-----------------------------------|--------|--------------------|--------|
| (In Years)                        |   | 2010               |   |   | 2009 |   |   | 2008 |   |
| U.S. Governments                  |   |               | 1.77   |   |   |   | 0.95 |   |   |   | 1.15 |   |
| States and Political Subdivisions |   |               | 0.85   |   |   |   | 0.96 |   |   |   | 1.56 |   |
| Mortgage-Backed Securities        |   |               | 3.68   |   |   |   | 1.82 |   |   |   | 4.98 |   |
| Other Securities                  |   |               | -      |   |   |   | - |   |   |   | - |   |
| TOTAL                             |   |               | 1.89   |   |   |   | 1.13 |   |   |   | 2.24 |   |

|                                      | 2009 to |    | Percentage |   | Components of  |   |
|-------------------------------------------|---------|---------|------------|--------|----------------|--------|
|                                      | 2010    |    | of Total   |   | Total Deposits |   |
| (Average Balances - Dollars in Thousands) | Change  |    | Change     |   | 2010           |   | 2009 |   | 2008 |   |
| Noninterest Bearing Deposits              | $       | 44,080  |       | 22.1   | %              | 21.1   | % | 21.0 | % | 19.7 | % |
| NOW Accounts                              |    | 151,966 |       | 76.0   |           | 39.4   |   | 35.7 |   | 36.0 |   |
| Money Market Accounts                     |    | 255     |       | 0.1    |           | 14.6   |   | 16.1 |   | 18.1 |   |
| Savings                                   |    | 10,363  |       | 5.2    |           | 6.0    |   | 6.1 |   | 5.6 |   |
| Time Deposits                             |    | (6,770) |       | (3.4)  |           | 18.9   |   | 21.1 |   | 20.6 |   |
| Total Deposits                            | $       | 199,894 |       | 100.0  | %              | 100.0  | % | 100.0 | % | 100.0 | % |

----

|                           |   | December 31, 2010            |    |
|--------------------------------|--------|------------------------------|---------|
| (Dollars in Thousands)         |   | Time Certificates of Deposit |    |   | Percent |   |
| Three months or less           |   | $                            | 38,933  |   |   |   | 29.7 | % |
| Over three through six months  |   |                         | 30,647  |   |   |   | 23.4 |   |
| Over six through twelve months |   |                         | 48,556  |   |   |   | 37.0 |   |
| Over twelve months             |   |                         | 12,951  |   |   |   | 9.9 |   |
| Total                          |   | $                            | 131,087 |   |   |   | 100.0 | % |

----

| Changes in Interest Rates | +300 bp     | +200 bp | +100 bp | -100 bp |   |
|---------------------------|-------------|---------|---------|---------|--------|
|                      |        |    |    |    |   |
| Policy Limit              | +/-10.0%    | +/-7.5% | +/-5.0% | +/-5.0% |   |
| December 31, 2010         |  -9.7% | -5.5%   | -1.9%   | -1.0%   |   |
| December 31, 2009         |  -6.1% | -3.4%   | -0.8%   | 0.7%    |   |

| Changes in Interest Rates | +300 bp  | +200 bp  | +100 bp | -100 bp |   |
|---------------------------|----------|----------|---------|---------|--------|
|                      |     |     |    |    |   |
| Policy Limit              | +/-12.5% | +/-10.0% | +/-7.5% | +/-7.5% |   |
| December 31, 2010         | -1.2%    | 2.4%     | 3.5%    | -6.6%   |   |
| December 31, 2009         | -4.3%    | 0.4%     | 2.7%    | -7.0%   |   |

| (1) | Down 200 and 300 rate scenarios have been excluded due to the current historically low interest rate environment. |
|-----|-------------------------------------------------------------------------------------------------------------------|

----

|                                    |   | Payments Due By Period |    |
|-----------------------------------------|--------|------------------------|---------|
| (Dollars in Thousands)                  |   | < 1 Yr              |    |   | > 1 – 3 Yrs |   |   | > 3 – 5 Yrs |   |   | > 5 Years |   |   | Total |   |
| Federal Home Loan Bank Advances         |   | $                      | 10,000  |   |   | $ | 16,887 |   |   | $ | 12,728 |   |   | $ | 20,486 |   |   | $ | 60,101 |   |
| Subordinated Notes Payable              |   |                   | -       |   |   |   | - |   |   |   | - |   |   |   | 62,887 |   |   |   | 62,887 |   |
| Operating Lease Obligations             |   |                   | 582     |   |   |   | 1,057 |   |   |   | 749 |   |   |   | 4,352 |   |   |   | 6,740 |   |
| Time Deposit Maturities                 |   |                   | 321,547 |   |   |   | 46,136 |   |   |   | 4,583 |   |   |   | - |   |   |   | 372,266 |   |
| Liability for Unrecognized Tax Benefits |   |                   | 966     |   |   |   | 2,379 |   |   |   | 1,907 |   |   |   | 611 |   |   |   | 5,863 |   |
| Total Contractual Cash Obligations      |   | $                      | 333,095 |   |   | $ | 66,459 |   |   | $ | 19,967 |   |   | $ | 88,336 |   |   | $ | 507,857 |   |

----

| (Dollars in Thousands)                             | 2010   |    |   | 2009   |   |    | 2008   |   |
|----------------------------------------------------|--------|---------|--------|--------|--------|---------|--------|--------|
| Common Stock                                       |   | 171     |   |   |   | 170     |   |   |   | 171 |   |
| Additional Paid-in Capital                         |   | 36,920  |   |   |   | 36,099  |   |   |   | 36,783 |   |
| Retained Earnings                                  |   | 237,679 |   |   |   | 246,460 |   |   |   | 262,890 |   |
| Subtotal                                           |   | 274,770 |   |   |   | 282,729 |   |   |   | 299,844 |   |
| Accumulated Other Comprehensive (Loss), Net of Tax |   | (15,751 | )      |   |   | (14,830 | )      |   |   | (21,014 | ) |
| Total Shareowners' Equity                          | $      | 259,019 |   |   | $      | 267,899 |   |   | $ | 278,830 |   |

| ·   | Compliance with state and federal laws and regulations; |
|--------------------|---------------------------------------------------------|

| ·   | Our capital position and our ability to meet our financial obligations; |
|--------------------|-------------------------------------------------------------------------|

| ·   | Projected earnings and asset levels; and |
|--------------------|------------------------------------------|

| ·   | The ability of the Bank and us to fund dividends. |
|--------------------|---------------------------------------------------|

----

----

----

----

| ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK |
|----------|-----------------------------------------------------------|

----

| Item 8.   | Financial Statements and Supplementary Data |
|---------------------|---------------------------------------------|

|                                               |   | 2010   |      |   | 2009   |   |
|----------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| (Dollars in Thousands, Except Per Share Data)      |   | Fourth |      |   | Third  |   |   | Second |   |   | First |   |   | Fourth |   |   | Third |   |   | Second |   |   | First |   |
| Summary of Operations:                             |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Income                                    |   | $      | 26,831    |   |   | $      | 27,576 |   |   | $ |                  27,934 |   |   | $ | 28,154 |   |   | $ | 29,756 |   |   | $ |  30,787 |   |   | $ |  31,180 |   |   | $ |  31,053 |   |
| Interest Expense                                   |   |   | 2,473     |   |   |   | 2,792 |   |   |   |         3,565 |   |   |   | 4,132 |   |   |   | 4,464 |   |   |   | 4,235 |   |   |   |     4,085 |   |   |   | 4,058 |   |
| Net Interest Income                                |   |   | 24,358    |   |   |   | 24,784 |   |   |   | 24,369 |   |   |   | 24,022 |   |   |   | 25,292 |   |   |   | 26,552 |   |   |   |   27,095 |   |   |   | 26,995 |   |
| Provision for Loan Losses                          |   |   | 3,783     |   |   |   | 5,668 |   |   |   |         3,633 |   |   |   | 10,740 |   |   |   | 10,834 |   |   |   | 12,347 |   |   |   |     8,426 |   |   |   | 8,410 |   |
| Net Interest Income AfterProvision for Loan Losses |   |   | 20,575    |   |   |   | 19,116 |   |   |   | 20,736 |   |   |   | 13,282 |   |   |   | 14,458 |   |   |   |  14,205 |   |   |   |  18,669 |   |   |   |  18,585 |   |
| Noninterest Income                                 |   |   | 14,735    |   |   |   | 13,449 |   |   |   | 14,674 |   |   |   | 13,967 |   |   |   | 14,411 |   |   |   | 14,304 |   |   |   | 14,634 |   |   |   | 14,042 |   |
| Noninterest Expense                                |   |   | 33,540    |   |   |   | 32,363 |   |   |   | 34,629 |   |   |   | 33,384 |   |   |   | 35,313 |   |   |   | 31,615 |   |   |   | 32,930 |   |   |   | 32,257 |   |
| Income (Loss) Before  Income Taxes       |   |   | 1,770     |   |   |   | 202 |   |   |   | 781 |   |   |   | (6,135 | ) |   |   | (6,444 | ) |   |   | (3,106 | ) |   |   |  373 |   |   |   |  370 |   |
| Income Tax (Benefit) Expense                       |   |   | (148      | )      |   |   | (199 | ) |   |   | 50 |   |   |   | (2,672 | ) |   |   | (3,037 | ) |   |   | (1,618 | ) |   |   | (401 | ) |   |   | (280 | ) |
| Net Income (Loss)                                  |   | $      | 1,918     |   |   | $      | 401 |   |   | $ | 731 |   |   | $ | (3,463 | ) |   | $ | (3,407 | ) |   | $ | (1,488 | ) |   | $ | 774 |   |   | $ | 650 |   |
| Net Interest Income (FTE)                          |   | $      | 24,654    |   |   | $      | 25,116 |   |   | $ | 24,738 |   |   | $ | 24,473 |   |   | $ | 25,845 |   |   | $ | 27,128 |   |   | $ | 27,679 |   |   | $ | 27,578 |   |
|                                               |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per Common Share:                                  |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) Basic                            |   | $      | 0.12      |   |   | $      | 0.02 |   |   | $ | 0.04 |   |   | $ | (0.20 | ) |   | $ | (0.20 | ) |   | $ | (0.08 | )  |   | $ | 0.04 |   |   | $ | 0.04 |   |
| Net Income (Loss) Diluted                          |   |   | 0.12      |   |   |   | 0.02 |   |   |   | 0.04 |   |   |   | (0.20 | ) |   |   | (0.20 | ) |   |   | (0.08 | )  |   |   | 0.04 |   |   |   | 0.04 |   |
| Dividends Declared                                 |   |   | 0.10      |   |   |   | 0.10 |   |   |   | 0.10 |   |   |   | 0.19 |   |   |   | 0.19 |   |   |   | 0.19 |   |   |   | 0.19 |   |   |   | 0.19 |   |
| Diluted Book Value                                 |   |   | 15.15     |   |   |   | 15.25 |   |   |   | 15.32 |   |   |   | 15.34 |   |   |   | 15.72 |   |   |   | 15.76 |   |   |   | 16.03 |   |   |   | 16.18 |   |
| Market Price:                                      |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High                                               |   |   | 14.19     |   |   |   | 14.24 |   |   |   | 18.25 |   |   |   | 14.61 |   |   |   | 14.34 |   |   |   | 17.10 |   |   |   | 17.35 |   |   |   | 27.31 |   |
| Low                                                |   |   | 11.56     |   |   |   | 10.76 |   |   |   | 12.36 |   |   |   | 11.57 |   |   |   | 11.00 |   |   |   | 13.92 |   |   |   | 11.01 |   |   |   | 9.50 |   |
| Close                                              |   |   | 12.60     |   |   |   | 12.14 |   |   |   | 12.38 |   |   |   | 14.25 |   |   |   | 13.84 |   |   |   | 14.20 |   |   |   | 16.85 |   |   |   | 11.46 |   |
|                                               |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected Average Balances:                         |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, Net                                         |   | $      | 1,782,916 |   |   | $      | 1,807,483 |   |   | $ | 1,841,379 |   |   | $ | 1,886,367 |   |   | $ | 1,944,873 |   |   | $ | 1,964,984 |   |   | $ | 1,974,197 |   |   | $ | 1,964,086 |   |
| Earning Assets                                     |   |   | 2,218,049 |   |   |   | 2,273,198 |   |   |   | 2,329,365 |   |   |   | 2,358,288 |   |   |   | 2,237,561 |   |   |   | 2,157,362 |   |   |   | 2,175,281 |   |   |   | 2,166,237 |   |
| Total Assets                                       |   |   | 2,576,793 |   |   |   | 2,626,758 |   |   |   | 2,678,488 |   |   |   | 2,698,419 |   |   |   | 2,575,250 |   |   |   | 2,497,969 |   |   |   | 2,506,352 |   |   |   | 2,486,925 |   |
| Deposits                                           |   |   | 2,115,867 |   |   |   | 2,172,165 |   |   |   | 2,234,178 |   |   |   | 2,248,760 |   |   |   | 2,090,008 |   |   |   | 1,950,170 |   |   |   | 1,971,190 |   |   |   | 1,957,354 |   |
| Shareowners’ Equity                          |   |   | 262,622   |   |   |   | 263,742 |   |   |   | 263,873 |   |   |   | 268,555 |   |   |   | 268,556 |   |   |   | 275,027 |   |   |   | 277,114 |   |   |   | 281,634 |   |
| Common Equivalent Average Shares:                  |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                              |   |   | 17,095    |   |   |   | 17,087 |   |   |   | 17,063 |   |   |   | 17,057 |   |   |   | 17,034 |   |   |   | 17,024 |   |   |   | 17,010 |   |   |   | 17,109 |   |
| Diluted                                            |   |   | 17,096    |   |   |   | 17,088 |   |   |   | 17,074 |   |   |   | 17,070 |   |   |   | 17,035 |   |   |   | 17,025 |   |   |   | 17,010 |   |   |   | 17,131 |   |
|                                               |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performance Ratios:                                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on Average Assets                           |   |   | 0.30      | %      |   |   | 0.06 | % |   |   | 0.11 | % |   |   | (0.52) | % |   |   | (0.52) | % |   |   | (0.24 | )% |   |   | 0.12 | % |   |   | 0.11 | % |
| Return on Average Equity                           |   |   | 2.90      |   |   |   | 0.60 |   |   |   | 1.11 |   |   |   | (5.23) |   |   |   | (5.03) |   |   |   | (2.15 | ) |   |   | 1.12 |   |   |   | 0.94 |   |
| Net Interest Margin (FTE)                          |   |   | 4.41      |   |   |   | 4.38 |   |   |   | 4.26 |   |   |   | 4.21 |   |   |   | 4.59 |   |   |   | 4.99 |   |   |   | 5.11 |   |   |   | 5.16 |   |
| Noninterest Income as % of Operating Revenue       |   |   | 37.69     |   |   |   | 35.17 |   |   |   | 37.58 |   |   |   | 36.77 |   |   |   | 36.30 |   |   |   | 35.01 |   |   |   | 35.07 |   |   |   | 34.22 |   |
| Efficiency Ratio                                   |   |   | 83.75     |   |   |   | 82.08 |   |   |   | 86.06 |   |   |   | 85.00 |   |   |   | 85.21 |   |   |   | 73.86 |   |   |   | 75.44 |   |   |   | 75.07 |   |
|                                               |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset Quality:                                     |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses                          |   |   | 35,436    |   |   |   | 37,720 |   |   |   | 38,442 |   |   |   | 41,199 |   |   |   | 43,999 |   |   |   | 45,401 |   |   |   | 41,782 |   |   |   | 40,172 |   |
| Allowance for Loan Losses to Loans                 |   |   | 2.01      | %      |   |   | 2.10 | % |   |   | 2.11 | % |   |   | 2.23 | % |   |   | 2.30 | % |   |   | 2.32 | % |   |   | 2.12 | % |   |   | 2.04 | % |
| Nonperforming Assets                               |   |   | 145,286   |   |   |   | 145,643 |   |   |   | 149,814 |   |   |   | 153,669 |   |   |   | 144,052 |   |   |   | 144,372 |   |   |   | 143,626 |   |   |   | 126,783 |   |
| Nonperforming Assets to Loans + ORE                |   |   | 8.00      |   |   |   | 7.86 |   |   |   | 8.01 |   |   |   | 8.10 |   |   |   | 7.38 |   |   |   | 7.25 |   |   |   | 7.19 |   |   |   | 6.39 |   |
| Allowance to Non-Performing Loans                  |   |   | 40.57     |   |   |   | 39.94 |   |   |   | 37.80 |   |   |   | 38.42 |   |   |   | 40.77 |   |   |   | 40.90 |   |   |   | 33.71 |   |   |   | 34.82 |   |
| Net Charge-Offs to Average Loans                   |   |   | 1.35      |   |   |   | 1.40 |   |   |   | 1.39 |   |   |   | 2.91 |   |   |   | 2.42 |   |   |   | 1.76 |   |   |   | 1.39 |   |   |   | 1.08 |   |
|                                               |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Ratios:                                    |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital Ratio                               |   |   | 13.24     | %      |   |   | 12.93 | % |   |   | 12.78 | % |   |   | 12.81 | % |   |   | 12.76 | % |   |   | 12.76 | % |   |   | 12.85 | % |   |   | 13.09 | % |
| Total Capital Ratio                                |   |   | 14.59     |   |   |   | 14.29 |   |   |   | 14.14 |   |   |   | 14.16 |   |   |   | 14.11 |   |   |   | 14.12 |   |   |   | 14.20 |   |   |   | 14.40 |   |
| Tangible Capital Ratio                             |   |   | 6.82      |   |   |   | 6.98 |   |   |   | 6.80 |   |   |   | 6.62 |   |   |   | 6.84 |   |   |   | 7.43 |   |   |   | 7.47 |   |   |   | 7.63 |   |
| Leverage Ratio                                     |   |   | 10.10     |   |   |   | 9.75 |   |   |   | 9.58 |   |   |   | 9.64 |   |   |   | 10.39 |   |   |   | 10.96 |   |   |   | 11.07 |   |   |   | 11.25 |   |

----

CONSOLIDATED FINANCIAL STATEMENTS

| PAGE     |                                                      |
|----------|-----------------------------------------------------------|
|     |                                                      |
|  60 | Report of Independent Registered Public Accounting Firm   |
|     |                                                      |
|  61 | Consolidated Statements of Financial Condition            |
|     |                                                      |
|  62 | Consolidated Statements of Operations                     |
|     |                                                      |
|  63 | Consolidated Statements of Changes in Shareowners' Equity |
|     |                                                      |
|  64 | Consolidated Statements of Cash Flows                     |
|     |                                                      |
| 65       | Notes to Consolidated Financial Statements                |

----

----

|                                                                                                                                                                         | As of December 31, |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|-----------|
| (Dollars in Thousands)                                                                                                                                                       | 2010               |      |   | 2009 |   |
| ASSETS                                                                                                                                                                       |               |      |   |   |   |
| Cash and Due From Banks                                                                                                                                                      | $                  | 35,410    |   |   | $ | 57,877 |   |
| Federal Funds Sold and Interest Bearing Deposits                                                                                                                             |               | 200,783   |   |   |   | 276,416 |   |
| Total Cash and Cash Equivalents                                                                                                                                              |               | 236,193   |   |   |   | 334,293 |   |
|                                                                                                                                                                         |               |      |   |   |   |   |   |
| Investment Securities, Available-for-Sale                                                                                                                                    |               | 309,731   |   |   |   | 176,673 |   |
|                                                                                                                                                                         |               |      |   |   |   |   |   |
| Loans, Net of Unearned Interest                                                                                                                                              |               | 1,758,671 |   |   |   | 1,915,940 |   |
| Allowance for Loan Losses                                                                                                                                                    |               | (35,436   | ) |   |   | (43,999 | ) |
| Loans, Net                                                                                                                                                                   |               | 1,723,235 |   |   |   | 1,871,941 |   |
|                                                                                                                                                                         |               |      |   |   |   |   |   |
| Premises and Equipment, Net                                                                                                                                                  |               | 115,356   |   |   |   | 115,439 |   |
| Goodwill                                                                                                                                                                     |               | 84,811    |   |   |   | 84,811 |   |
| Other Intangible Assets                                                                                                                                                      |               | 1,348     |   |   |   | 4,030 |   |
| Other Assets                                                                                                                                                                 |               | 151,379   |   |   |   | 121,137 |   |
| Total Assets                                                                                                                                                                 | $                  | 2,622,053 |   |   | $ | 2,708,324 |   |
|                                                                                                                                                                         |               |      |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                  |               |      |   |   |   |   |   |
| Deposits:                                                                                                                                                                    |               |      |   |   |   |   |   |
| Noninterest Bearing Deposits                                                                                                                                                 | $                  | 546,257   |   |   | $ | 427,791 |   |
| Interest Bearing Deposits                                                                                                                                                    |               | 1,557,719 |   |   |   | 1,830,443 |   |
| Total Deposits                                                                                                                                                               |               | 2,103,976 |   |   |   | 2,258,234 |   |
|                                                                                                                                                                         |               |      |   |   |   |   |   |
| Short-Term Borrowings                                                                                                                                                        |               | 92,928    |   |   |   | 35,841 |   |
| Subordinated Notes Payable                                                                                                                                                   |               | 62,887    |   |   |   | 62,887 |   |
| Other Long-Term Borrowings                                                                                                                                                   |               | 50,101    |   |   |   | 49,380 |   |
| Other Liabilities                                                                                                                                                            |               | 53,142    |   |   |   | 34,083 |   |
| Total Liabilities                                                                                                                                                            |               | 2,363,034 |   |   |   | 2,440,425 |   |
|                                                                                                                                                                         |               |      |   |   |   |   |   |
| SHAREOWNERS' EQUITY                                                                                                                                                          |               |      |   |   |   |   |   |
| Preferred Stock, $.01 par value; 3,000,000 shares authorized; no shares issued and outstanding                                                                               |               | -         |   |   |   | - |   |
| Common Stock, $.01 par value; 90,000,000 shares authorized; 17,100,081 and 17,036,407 shares issued and outstanding at December 31, 2010 and December 31, 2009, respectively |               | 171       |   |   |   | 170 |   |
| Additional Paid-In Capital                                                                                                                                                   |               | 36,920    |   |   |   | 36,099 |   |
| Retained Earnings                                                                                                                                                            |               | 237,679   |   |   |   | 246,460 |   |
| Accumulated Other Comprehensive Loss, Net of Tax                                                                                                                             |               | (15,751   | ) |   |   | (14,830 | ) |
| Total Shareowners' Equity                                                                                                                                                    |               | 259,019   |   |   |   | 267,899 |   |
| Total Liabilities and Shareowners' Equity                                                                                                                                    | $                  | 2,622,053 |   |   | $ | 2,708,324 |   |

----

|                                                   | For the Years Ended December 31, |    |
|--------------------------------------------------------|----------------------------------|---------|
| (Dollars in Thousands, Except Per Share Data)          | 2010                             |    |   | 2009 |   |   | 2008 |   |
| INTEREST INCOME                                        |                             |    |   |   |   |   |   |   |
| Interest and Fees on Loans                             | $                                | 105,710 |   |   | $ | 117,324 |   |   | $ | 132,682 |   |
| Investment Securities:                                 |                             |    |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                                          |                             | 1,083   |   |   |   | 547 |   |   |   | 747 |   |
| U.S. Government Agencies and Corporations              |                             | 1,285   |   |   |   | 1,827 |   |   |   | 2,562 |   |
| States and Political Subdivisions                      |                             | 1,517   |   |   |   | 2,672 |   |   |   | 3,185 |   |
| Other Securities                                       |                             | 313     |   |   |   | 324 |   |   |   | 581 |   |
| Funds Sold                                             |                             | 587     |   |   |   | 82 |   |   |   | 3,109 |   |
| Total Interest Income                                  |                             | 110,495 |   |   |   | 122,776 |   |   |   | 142,866 |   |
|                                                   |                             |    |   |   |   |   |   |   |   |   |   |
| INTEREST EXPENSE                                       |                             |    |   |   |   |   |   |   |   |   |   |
| Deposits                                               |                             | 8,645   |   |   |   | 10,585 |   |   |   | 27,306 |   |
| Short-Term Borrowings                                  |                             | 159     |   |   |   | 291 |   |   |   | 1,157 |   |
| Subordinated Notes Payable                             |                             | 2,008   |   |   |   | 3,730 |   |   |   | 3,735 |   |
| Other Long-Term Borrowings                             |                             | 2,150   |   |   |   | 2,236 |   |   |   | 1,802 |   |
| Total Interest Expense                                 |                             | 12,962  |   |   |   | 16,842 |   |   |   | 34,000 |   |
|                                                   |                             |    |   |   |   |   |   |   |   |   |   |
| NET INTEREST INCOME                                    |                             | 97,533  |   |   |   | 105,934 |   |   |   | 108,866 |   |
| Provision for Loan Losses                              |                             | 23,824  |   |   |   | 40,017 |   |   |   | 32,496 |   |
| Net Interest Income After Provision for Loan Losses    |                             | 73,709  |   |   |   | 65,917 |   |   |   | 76,370 |   |
|                                                   |                             |    |   |   |   |   |   |   |   |   |   |
| NONINTEREST INCOME                                     |                             |    |   |   |   |   |   |   |   |   |   |
| Service Charges on Deposit Accounts                    |                             | 26,500  |   |   |   | 28,142 |   |   |   | 27,742 |   |
| Data Processing Fees                                   |                             | 3,610   |   |   |   | 3,628 |   |   |   | 3,435 |   |
| Asset Management Fees                                  |                             | 4,235   |   |   |   | 3,925 |   |   |   | 4,235 |   |
| Securities Transactions                                |                             | 8       |   |   |   | 10 |   |   |   | 125 |   |
| Mortgage Banking Fees                                  |                             | 2,948   |   |   |   | 2,699 |   |   |   | 1,623 |   |
| Bank Card Fees                                         |                             | 9,200   |   |   |   | 10,306 |   |   |   | 12,701 |   |
| Gain on Sale of Portion of Merchant Services Portfolio |                             | -       |   |   |   | - |   |   |   | 6,250 |   |
| Other                                                  |                             | 10,324  |   |   |   | 8,681 |   |   |   | 10,929 |   |
| Total Noninterest Income                               |                             | 56,825  |   |   |   | 57,391 |   |   |   | 67,040 |   |
|                                                   |                             |    |   |   |   |   |   |   |   |   |   |
| NONINTEREST EXPENSE                                    |                             |    |   |   |   |   |   |   |   |   |   |
| Salaries and Associate Benefits                        |                             | 62,755  |   |   |   | 65,067 |   |   |   | 61,831 |   |
| Occupancy, Net                                         |                             | 10,010  |   |   |   | 9,798 |   |   |   | 9,729 |   |
| Furniture and Equipment                                |                             | 8,929   |   |   |   | 9,096 |   |   |   | 9,902 |   |
| Intangible Amortization                                |                             | 2,682   |   |   |   | 4,042 |   |   |   | 5,685 |   |
| Other Real Estate                                      |                             | 14,922  |   |   |   | 7,577 |   |   |   | 1,306 |   |
| Other                                                  |                             | 34,618  |   |   |   | 36,535 |   |   |   | 33,019 |   |
| Total Noninterest Expense                              |                             | 133,916 |   |   |   | 132,115 |   |   |   | 121,472 |   |
|                                                   |                             |    |   |   |   |   |   |   |   |   |   |
| (LOSS) INCOME BEFORE INCOME TAXES                      |                             | (3,382  | )  |   |   | (8,807 | )  |   |   | 21,938 |   |
| Income Tax (Benefit) Expense                           |                             | (2,969  | ) |   |   | (5,336 | ) |   |   | 6,713 |   |
|                                                   |                             |    |   |   |   |   |   |   |   |   |   |
| NET (LOSS) INCOME                                      | $                                | (413    | ) |   | $ | (3,471 | ) |   | $ | 15,225 |   |
| BASIC NET (LOSS) INCOME PER SHARE                      | $                                | (0.02   | ) |   | $ | (0.20 | ) |   | $ | 0.89 |   |
| DILUTED NET (LOSS) INCOME  PER SHARE         | $                                | (0.02   | ) |   | $ | (0.20 | ) |   | $ | 0.89 |   |
|                                                   |                             |    |   |   |   |   |   |   |   |   |   |
| Average Basic Common Shares Outstanding                |                             | 17,076  |   |   |   | 17,044 |   |   |   | 17,141 |   |
| Average Diluted Common Shares Outstanding              |                             | 17,077  |   |   |   | 17,045 |   |   |   | 17,147 |   |

----

| (Dollars in Thousands, Except Per Share Data)                                                                                                                                            |   | Shares Outstanding |   |   | Common Stock |   |   | AdditionalPaid-InCapital |   |   | RetainedEarnings |   |    | Accumulated OtherComprehensive(Loss) Income,Net of Taxes |   |   | Total        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|--------------|--------|--------|--------------------------|--------|--------|------------------|--------|---------|----------------------------------------------------------|--------|--------|--------------|
| Balance, December 31, 2007                                                                                                                                                               |   |  17,182,553   |   |   | 172          |   |   |                     | 38,243 |   |             |   | 260,325 |                                                     |   |   | (6,065       | ) |   |   | 292,675 |   |
| Cumulative Effect of Adoption of EITF 06-4                                                                                                                                               |   |               |   |   |         |   |   |                     |   |   |             |   | (30     | )                                                        |   |   |         |   |   |   | (30 | ) |
| Com Comprehensive Income:                                                                                                                                                                |   |               |   |   |         |   |   |                     |   |   |             |   |    |                                                     |   |   |         |   |   |   |   |   |
| Net   Net Income                                                                                                                                                               |   |               |   |   | -            |   |   |                     | -      |   |             |   | 15,225  |                                                     |   |   | -            |   |   |   | 15,225 |   |
| Net   Change in Unrealized Gain On Available-for-Sale Securities      (net of tax)                                                          |   |               |   |   | -            |   |   |                     | -      |   |             |   | -       |                                                     |   |   | 1,230        |   |   |   |  1,230 |   |
| Net   Change in Funded Status of Defined Pension Plan and SERP Plan               (net of tax) |   |               |   |   | -            |   |   |                     | -      |   |             |   | -       |                                                     |   |   | (16,179      | ) |   |   | (16,179 | ) |
| Total Comprehensive Income                                                                                                                                                               |   |               |   |   | -            |   |   |                     | -      |   |             |   | -       |                                                     |   |   | -            |   |   |   | 276 |   |
| Cash Dividends ($.7450 per share)                                                                                                                                                        |   |               |   |   | -            |   |   |                     | -      |   |             |   | (12,630 | )                                                        |   |   | -            |   |   |   | (12,630 | ) |
| Stock Performance Plan Compensation                                                                                                                                                      |   |               |   |   | -            |   |   |                     | 62     |   |             |   | -       |                                                     |   |   | -            |   |   |   | 62 |   |
| Issuance of Common Stock                                                                                                                                                                 |   |  34,485       |   |   |         |   |   |                     | 891    |   |             |   | -       |                                                     |   |   | -            |   |   |   | 891 |   |
| Repurchase of Common Stock                                                                                                                                                               |   | (90,041            | )      |   | (1           | )      |   |                     | (2,413 | )      |             |   | -       |                                                     |   |   | -            |   |   |   | (2,414 | ) |
|          Balance, December 31, 2008                                                                                                         |   | 17,126,997         |   |   | 171          |   |   |                     | 36,783 |   |             |   | 262,890 |                                                     |   |   | (21,014      | ) |   |   | 278,830 |   |
| Co    Comprehensive Income:                                                                                                                                          |   |               |   |   |         |   |   |                     |   |   |             |   |    |                                                     |   |   |         |   |   |   |   |   |
| Net   Net Loss                                                                                                                                                                 |   |               |   |   | -            |   |   |                     | -      |   |             |   | (3,471  | )                                                   |   |   | -            |   |   |   | (3,471 | )  |
| Net   Change in Unrealized Gain on  Available-for-Sale Securities      (net of tax)                                               |   |               |   |   | -            |   |   |                     | -      |   |             |   | -       |                                                     |   |   | (888         | )  |   |   |  (888 | )  |
| Net   Change in Funded Status of Defined Pension Plan and SERP Plan              (net of tax)            |   |               |   |   | -            |   |   |                     | -      |   |             |   | -       |                                                     |   |   |  7,072  |   |   |   | 7,072 |   |
| Total Comprehensive Income                                                                                                                                                               |   |               |   |   | -            |   |   |                     | -      |   |             |   | -       |                                                     |   |   | -            |   |   |   | 2,713 |   |
| Cash Dividends ($.7600 per share)                                                                                                                                                        |   |               |   |   | -            |   |   |                     | -      |   |             |   | (12,959 | )                                                        |   |   | -            |   |   |   | (12,959 | ) |
| Stock Performance Plan Compensation                                                                                                                                                      |   |               |   |   | -            |   |   |                     | (176   | )      |             |   | -       |                                                     |   |   | -            |   |   |   | (176 | )  |
| Issuance of Common Stock                                                                                                                                                                 |   |  55,298       |   |   |         |   |   |                     | 1,052  |   |             |   | -       |                                                     |   |   | -            |   |   |   |  1,052 |   |
| Repurchase of Common Stock                                                                                                                                                               |   | (145,888           | )      |   | (1           | )      |   |                     | (1,560 | )      |             |   | -       |                                                     |   |   | -            |   |   |   | (1,561 | ) |
| Balance, December 31, 2009                                                                                                                                                               |   | 17,036,407         |   | $      | 170          |   |   | $                        | 36,099 |   |             | $      | 246,460 |                                                     |   | $      | (14,830      | ) |   | $ | 267,899 |   |
|                                                                                                                                                                                     |   |               |   |   |         |   |   |                     |   |   |             |   |    |                                                     |   |   |         |   |   |   |   |   |
|                                                                                                                                                                                     |   |               |   |   |         |   |   |                     |   |   |             |   |    |                                                     |   |   |         |   |   |   |   |   |
| Co    Comprehensive Income:                                                                                                                                          |   |               |   |   |         |   |   |                     |   |   |             |   |    |                                                     |   |   |         |   |   |   |   |   |
| Net   Net Loss                                                                                                                                                                 |   |               |   |   | -            |   |   |                     | -      |   |             |   | (413    | )                                                   |   |   | -            |   |   |   | (413 | )  |
| Net   Net Change in Unrealized Gain on  Available-for-Sale Securities      (net of tax)                                           |   |               |   |   | -            |   |   |                     | -      |   |             |   | -       |                                                     |   |   | 79           |   |   |   |  79 |   |
| Net   Net Change in Funded Status of Defined Pension Plan and SERP Plan              (net of tax)        |   |               |   |   | -            |   |   |                     | -      |   |             |   | -       |                                                     |   |   |  (1,000 | )  |   |   | (1,000 | )  |
| Total Comprehensive Loss                                                                                                                                                                 |   |               |   |   | -            |   |   |                     | -      |   |             |   | -       |                                                     |   |   | -            |   |   |   | (1,334 | )  |
| Cash Dividends ($.4900 per share)                                                                                                                                                        |   |               |   |   | -            |   |   |                     | -      |   |             |   | (8,368  | )                                                        |   |   | -            |   |   |   | (8,368 | ) |
| Stock Performance Plan Compensation                                                                                                                                                      |   |               |   |   | -            |   |   |                     | -      |   |             |   | -       |                                                     |   |   | -            |   |   |   | - |   |
| Issuance of Common Stock                                                                                                                                                                 |   | 63,674             |   |   |   1     |   |   |                     | 821    |   |             |   | -       |                                                     |   |   | -            |   |   |   | 822 |   |
| Repurchase of Common Stock                                                                                                                                                               |   | -                  |   |   | -            |   |   |                     | -      |   |             |   | -       |                                                     |   |   | -            |   |   |   | - |   |
| Balance, December 31, 2010                                                                                                                                                               |   | 17,100,081         |   | $      | 171          |   |   | $                        | 36,920 |   |             | $      | 237,679 |                                                     |   | $      | (15,751      | ) |   | $ | 259,019 |   |

----

|                                                                                   | For the Years Ended December 31, |           |
|----------------------------------------------------------------------------------------|----------------------------------|----------------|
| (Dollars in Thousands)                                                                 | 2010                             |           |   | 2009 |   |   | 2008 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                  |                             |           |   |   |   |   |   |   |
| Net (Loss) Income                                                                      | $                                | (413           | ) |   | $ | (3,471 | ) |   | $ | 15,225 |   |
| A Adjustments to Reconcile Net (Loss) Income to Cash Provided by Operating Activities: |                             |           |   |   |   |   |   |   |   |   |   |
| Provision for Loan Losses                                                              |                             | 23,824         |   |   |   | 40,017 |   |   |   | 32,496 |   |
| Depreciation                                                                           |                             | 7,050          |   |   |   | 6,680 |   |   |   | 6,798 |   |
| Net Securities Amortization                                                            |                             | 3,384          |   |   |   | 2,364 |   |   |   | 990 |   |
| Amortization of Intangible Assets                                                      |                             | 2,682          |   |   |   | 4,042 |   |   |   | 5,685 |   |
| Gain on Securities Transactions                                                        |                             | (8             | ) |   |   | (10 | ) |   |   | (125 | ) |
| Loss on Impaired Security                                                              |                             | 100            |   |   |   | 300 |   |   |   | - |   |
| Origination  of Loans Held-for-Sale                                          |                             | (143,479       | ) |   |   | (158,193 | ) |   |   | (106,340 | ) |
| Proceeds From Sales of Loans Held-for-Sale                                             |                             | 148,288        |   |   |   | 156,865 |   |   |   | 108,218 |   |
| Net Gain From Sales of Loans Held-for Sale                                             |                             | (2,948         | ) |   |   | (2,699 | ) |   |   | (1,623 | ) |
| Gain on Sale of Portion of Merchant Services Portfolio                                 |                             | -              |   |   |   | - |   |   |   | (6,250 | ) |
| Proceeds From Sale of Portion of Merchant Services Portfolio                           |                             | -              |   |   |   | - |   |   |   | 6,250 |   |
| Non-Cash Compensation                                                                  |                             | -              |   |   |   | - |   |   |   | 62 |   |
| Net Decrease (Increase) in Deferred Income Taxes                                       |                             | 1,898          |   |   |   | 2,911 |   |   |   | (15,235 | ) |
| Net Decrease (Increase) in Other Assets                                                |                             | 16,457         |   |   |   | 5,929 |   |   |   | (1,371 | ) |
| Net Increase (Decrease) in Other Liabilities                                           |                             | 19,059         |   |   |   | (4,176 | ) |   |   | 2,200 |   |
| Net Cash Provided by Operating Activities                                              |                             | 75,894         |   |   |   | 50,559 |   |   |   | 46,980 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                  |                             |           |   |   |   |   |   |   |   |   |   |
| Securities Available-for-Sale:                                                         |                             |           |   |   |   |   |   |   |   |   |   |
| Purchases                                                                              |                             | (224,245       | ) |   |   | (66,794 | ) |   |   | (89,059 | ) |
| Sales                                                                                  |                             | 505            |   |   |   | 2,806 |   |   |   | 10,490 |   |
| Payments, Maturities, and Calls                                                        |                             | 86,935         |   |   |   | 75,295 |   |   |   | 78,767 |   |
| Net (Increase) Decrease in Loans                                                       |                             | 73,775         |   |   |   | (31,135 | ) |   |   | (66,635 | ) |
| Purchase of Premises & Equipment                                                   |                             | (6,975         | ) |   |   | (15,688 | ) |   |   | (14,626 | ) |
| Proceeds From Sales of Premises & Equipment                                        |                             | 7              |   |   |   | 2 |   |   |   | 6 |   |
| Net Cash (Used In) Provided By Investing Activities                                    |                             | (69,998        | ) |   |   | (35,514 | ) |   |   | (81,057 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                  |                             |           |   |   |   |   |   |   |   |   |   |
| Net (Decrease) Increase in Deposits                                                    |                             |  (154,258 | )  |   |   | 266,061 |   |   |   | (150,171 | ) |
| Net Increase (Decrease) in Short-Term Borrowings                                       |                             | 57,088         |   |   |   | (26,486 | ) |   |   | 8,925 |   |
| Increase (Decrease) in Other Long-Term Borrowings                                      |                             | 2,478          |   |   |   | 2,029 |   |   |   | 30,600 |   |
| Repayment of Other Long-Term Borrowings                                                |                             | (1,758         | ) |   |   | (3,837 | ) |   |   | (5,872 | ) |
| Dividends Paid                                                                         |                             | (8,368         | ) |   |   | (12,959 | ) |   |   | (12,630 | ) |
| Repurchase of Common Stock                                                             |                             | -              |   |   |   | (1,561 | )  |   |   |  (2,414 | ) |
| Issuance of Common Stock                                                               |                             | 822            |   |   |   | 1,052 |   |   |   | 891 |   |
| Net Cash (Used In) Provided by Financing Activities                                    |                             | (103,996       | )  |   |   | 224,299 |   |   |   | (130,671 | ) |
|                                                                                   |                             |           |   |   |   |   |   |   |   |   |   |
| NET CHANGE IN CASH AND CASH EQUIVALENTS                                                |                             | (98,100)       |   |   |   | 239,344 |   |   |   | (164,748 | ) |
|                                                                                   |                             |           |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents at Beginning of Year                                         |                             | 334,293        |   |   |   | 94,949 |   |   |   | 259,697 |   |
| Cash and Cash Equivalents at End of Year                                               | $                                | 236,193        |   |   | $ | 334,293 |   |   | $ | 94,949 |   |
|                                                                                   |                             |           |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES:                                                              |                             |           |   |   |   |   |   |   |   |   |   |
|   Interest Paid on Deposits                                                  | $                                | 9,659          |   |   | $ | 10,586 |   |   | $ | 29,729 |   |
|   Interest Paid on Debt                                                      |                             | 4,323          |   |   |   | 6,273 |   |   |   | 6,658 |   |
|   Taxes Paid                                                                 |                             | 605            |   |   |   | 7,218 |   |   |   | 16,998 |   |
|   Loans Transferred to Other Real Estate                                     |                             | 49,247         |   |   |   | 43,997 |   |   |   | 10,874 |   |
|   Iss   Issuance of Common Stock as Non-Cash Compensation     |                             | -              |   |   |   | 155 |   |   |   | - |   |
|   Transfer of Current Portion of Long-Term Borrowings                        | $                                | 10,000         |   |   | $ | 637 |   |   | $ | 176 |   |

----

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|                                      |   | 2010          |    |
|-------------------------------------------|--------|---------------|---------|
| (Dollars in Thousands)                    |   | AmortizedCost |    |   | UnrealizedGains |   |   | UnrealizedLosses |   |   | MarketValue |   |
| U.S. Treasury                             |   | $             | 160,913 |   |   | $ | 1,371 |   |   | $ | 134 |   |   | $ | 162,150 |   |
| U.S. Government Agencies and Corporations |   |          | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| States and Political Subdivisions         |   |          | 78,990  |   |   |   | 319 |   |   |   | 9 |   |   |   | 79,300 |   |
| Mortgage-Backed Securities                |   |          | 56,099  |   |   |   | 678 |   |   |   | 560 |   |   |   | 56,217 |   |
| Other Securities(1)                       |   |          | 12,664  |   |   |   | - |   |   |   | 600 |   |   |   | 12,064 |   |
| Total Investment Securities               |   | $             | 308,666 |   |   | $ | 2,368 |   |   | $ | 1,303 |   |   | $ | 309,731 |   |

|                                      |   | 2009          |    |
|-------------------------------------------|--------|---------------|---------|
| (Dollars in Thousands)                    |   | AmortizedCost |    |   | UnrealizedGains |   |   | UnrealizedLosses |   |   | MarketValue |   |
| U.S. Treasury                             |   | $             | 22,270  |   |   | $ | 174 |   |   | $ | - |   |   | $ | 22,444 |   |
| U.S. Government Agencies and Corporations |   |          | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| States and Political Subdivisions         |   |          | 106,455 |   |   |   | 1,166 |   |   |   | 71 |   |   |   | 107,550 |   |
| Mortgage-Backed Securities                |   |          | 33,375  |   |   |   | 798 |   |   |   | 30 |   |   |   | 34,143 |   |
| Other Securities(1)                       |   |          | 13,236  |   |   |   | - |   |   |   | 700 |   |   |   | 12,536 |   |
| Total Investment Securities               |   | $             | 175,336 |   |   | $ | 2,138 |   |   | $ | 801 |   |   | $ | 176,673 |   |

| (1) | Includes Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank stock recorded at cost of $7.2 million and $4.8 million, respectively, at December 31, 2010 and $7.7 million and $4.8 million, respectively, at December 31, 2009.  No ready market exists for these stocks, and they have no quoted market value.  However, redemption of these stocks has historically been at par value. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (Dollars in Thousands) | Year       |   | TotalProceeds |   |   | GrossRealized Gains |   |   | GrossRealized Losses |   |
|------------------------|------------|--------|---------------|--------|--------|---------------------|--------|--------|----------------------|--------|
|                   |  2010 |   | $             | 3,640  |   |                | $      | 8      |                 |   | $ | - |   |
|                   |  2009 |   | $             | 5,316  |   |                | $      | 10     |                 |   | $ | - |   |
|                   |  2008 |   | $             | 30,517 |   |                | $      | 126    |                 |   | $ |   (1 | ) |

| (Dollars in Thousands)           |   | Amortized Cost                                                                                    |   | Market Value |
|----------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|--------------|
| Due in one year or less          | $      |         69,414                                            |   |  $      |               69,768 |   |
| Due after one through five years |   |       209,583                                                       |   |         |             211,203 |   |
| Due after five through ten years |   |         17,005                                            |   |         |               16,696 |   |
| Due over ten years               |   |                 - |   |         |                       - |   |
| No Maturity                      |   |         12,664                                            |   |         |               12,064 |   |
| Total Investment Securities      | $      |    308,666                                                                         |   |  $      |        309,731 |   |

----

|                                                              |               |   | December 31, 2010     |   |        |   |
|-------------------------------------------------------------------|--------------------|--------|-----------------------|--------|-------------|--------|
|                                                              | Less Than12 Months |   | Greater Than12 Months |   | Total       |   |
| (Dollars in Thousands)                                            | MarketValue        |   | UnrealizedLosses      |   | MarketValue |   | UnrealizedLosses |   | MarketValue |   | UnrealizedLosses |   |
| U.S. Treasury                                                     |               | $      | 36,103                |   |        | $      | 134 |   |   | $ | - |   |   | $ | - |   |   | $ | 36,103 |   |   | $ | 134 |   |
|     U.S. Government Agencies and Corporations |               |   | -                     |   |        |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     States and Political Subdivisions         |               |   | 4,622                 |   |        |   | 9 |   |   |   | - |   |   |   | - |   |   |   | 4,622 |   |   |   | 9 |   |
|     Mortgage-Backed Securities           |               |   | 33,990                |   |        |   |  560 |   |   |   |  - |   |   |   |  - |   |   |   | 33,990 |   |   |   |  560 |   |
|     Other Securities                          |               |   | -                     |   |        |   | - |   |   |   | 600 |   |   |   | 600 |   |   |   | 600 |   |   |   | 600 |   |
|     Total Investment Securities               |               | $      | 74,715                |   |        | $      | 703 |   |   | $ |   600 |   |   | $ |   600 |   |   | $ | 75,315 |   |   | $ | 1,303 |   |

|                                                              |               |   | December 31, 2009     |   |        |   |
|-------------------------------------------------------------------|--------------------|--------|-----------------------|--------|-------------|--------|
|                                                              | Less Than12 Months |   | Greater Than12 Months |   | Total       |   |
| (Dollars in Thousands)                                            | MarketValue        |   | UnrealizedLosses      |   | MarketValue |   | UnrealizedLosses |   | MarketValue |   | UnrealizedLosses |   |
| U.S. Treasury                                                     |               | $      | -                     |   |        | $      | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|     U.S. Government Agencies and Corporations |               |   | -                     |   |        |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     States and Political Subdivisions         |               |   | 3,107                 |   |        |   | 71 |   |   |   | - |   |   |   | - |   |   |   | 3,107 |   |   |   | 71 |   |
|     Mortgage-Backed Securities           |               |   |  5,381           |   |        |   |  30 |   |   |   |  - |   |   |   |  - |   |   |   | 5,381 |   |   |   | 30 |   |
|     Other Securities                          |               |   | 700                   |   |        |   | 700 |   |   |   | - |   |   |   | - |   |   |   | 700 |   |   |   | 700 |   |
|     Total Investment Securities               |               | $      | 9,188                 |   |        | $      | 801 |   |   | $ |   |   |   | $ |   |   |   | $ | 9,188 |   |   | $ | 801 |   |

----

| (Dollars in Thousands)                      |   | 2010   |      |   | 2009   |   |
|---------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Commercial, Financial and Agricultural      |   | $      | 157,394   |   |   | $      | 189,061 |   |
| Real Estate - Construction(2)               |   |   | 43,239    |   |   |   | 111,249 |   |
| Real Estate - Commercial Mortgage(2)        |   |   | 671,702   |   |   |   | 716,791 |   |
| Real Estate -  Residential(1) (2) |   |   | 424,229   |   |   |   | 408,578 |   |
| Real Estate - Home Equity                   |   |   | 251,565   |   |   |   | 246,722 |   |
| Real Estate - Loans Held-for-Sale           |   |   | 6,312     |   |   |   | 7,891 |   |
| Consumer                                    |   |   | 204,230   |   |   |   | 235,648 |   |
| Total Loans, Net of Unearned Interest       |   | $      | 1,758,671 |   |   | $      | 1,915,940 |   |

| (1)   | Includes loans in process with outstanding balances of $10.0 million and $10.7 million for 2010 and 2009, respectively. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (2)   | During 2010, reclassified $10.0 million in construction loans to residential real estate category and $30.0 million in commercial real estate loans to the residential real estate to better reflect the nature of the loans and their underlying collateral. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2010(Dollars in Thousands)             |   | 30-59 DaysPast Due |   |   | 60-89 DaysPast Due |   |   | Over 90 DaysPast Due |   |   | TotalPast Due |   |   | TotalCurrent |   |   | TotalLoans |   |
|----------------------------------------|--------|--------------------|--------|--------|--------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|--------------|--------|--------|------------|--------|
| Commercial, Financial and Agricultural |   | $                  | 645    |   |               | $      | 193    |                 |   | $      | -             |   |   | $            | 838    |   |       | $      | 155,497 |   |   | $ | 157,394 |   |
| Real Estate - Construction             |   |               | 314    |   |               |   | 129    |                 |   |   | -             |   |   |         | 443    |   |       |   | 40,890 |   |   |   | 43,239 |   |
| Real Estate - Commercial Mortgage      |   |               | 5,577  |   |               |   | 840    |                 |   |   | -             |   |   |         | 6,417  |   |       |   | 638,411 |   |   |   | 671,702 |   |
| Real Estate -  Residential   |   |               | 7,171  |   |               |   | 3,958  |                 |   |   | 120           |   |   |         | 11,249 |   |       |   | 389,103 |   |   |   | 430,541 |   |
| Real Estate - Home Equity              |   |               | 1,444  |   |               |   | 698    |                 |   |   | 39            |   |   |         | 2,182  |   |       |   | 244,579 |   |   |   | 251,565 |   |
| Consumer                               |   |               | 2,867  |   |               |   | 356    |                 |   |   | -             |   |   |         | 3,223  |   |       |   | 200,139 |   |   |   | 204,230 |   |
| Total Past Due Loans                   |   | $                  | 18,018 |   |               | $      | 6,174  |                 |   | $      | 159           |   |   | $            | 24,352 |   |       | $      | 1,668,619 |   |   | $ | 1,758,671 |   |

| 2009(Dollars in Thousands)             |   | 30-59 DaysPast Due |   |   | 60-89 DaysPast Due |   |   | Over 90 DaysPast Due |   |   | TotalPast Due |   |   | TotalCurrent |   |   | TotalLoans |   |
|----------------------------------------|--------|--------------------|--------|--------|--------------------|--------|--------|----------------------|--------|--------|---------------|--------|--------|--------------|--------|--------|------------|--------|
| Commercial, Financial and Agricultural |   | $                  | 2,402  |   |               | $      | 598    |                 |   | $      | -             |   |   | $            | 3,000  |   |       | $      | 183,332 |   |   | $ | 189,061 |   |
| Real Estate - Construction             |   |               | 4,382  |   |               |   | -      |                 |   |   | -             |   |   |         | 4,382  |   |       |   | 86,070 |   |   |   | 111,249 |   |
| Real Estate - Commercial Mortgage      |   |               | 6,887  |   |               |   | 946    |                 |   |   | -             |   |   |         | 7,833  |   |       |   | 679,916 |   |   |   | 716,791 |   |
| Real Estate -  Residential   |   |               | 7,941  |   |               |   | 3,872  |                 |   |   | -             |   |   |         | 11,813 |   |       |   | 378,057 |   |   |   | 416,469 |   |
| Real Estate - Home Equity              |   |               | 3,152  |   |               |   | 795    |                 |   |   | -             |   |   |         | 3,947  |   |       |   | 237,495 |   |   |   | 246,722 |   |
| Consumer                               |   |               | 4,622  |   |               |   | 906    |                 |   |   | -             |   |   |         | 5,528  |   |       |   | 228,292 |   |   |   | 235,648 |   |
| Total Past Due Loans                   |   | $                  | 29,386 |   |               | $      | 7,117  |                 |   | $      | -             |   |   | $            | 36,503 |   |       | $      | 1,793,162 |   |   | $ | 1,915,940 |   |
|                                   |   |

----

|                                   |   | 2010       |   |   | 2009         |
|----------------------------------------|--------|------------|--------|--------|--------------|
| (Dollars in Thousands)                 |   | Nonaccrual |   |   | Over 90 Days |   |   | Nonaccrual |   |   |   Over 90 Days |   |
| Commercial, Financial and Agricultural |   | $          | 1,059  |   |         | $ | - |   |   | $ | 2,729 |   |   | $ | - |   |
| Real Estate - Construction             |   |       | 1,907  |   |         |   | - |   |   |   | 20,797 |   |   |   | - |   |
| Real Estate - Commercial Mortgage      |   |       | 26,874 |   |         |   | - |   |   |   | 29,042 |   |   |   | - |   |
| Real Estate -  Residential   |   |       | 30,189 |   |         |   | 120 |   |   |   | 26,599 |   |   |   | - |   |
| Real Estate - Home Equity              |   |       | 4,803  |   |         |   | 39 |   |   |   | 5,280 |   |   |   | - |   |
| Consumer                               |   |       | 868    |   |         |   | - |   |   |   | 1,827 |   |   |   | - |   |
| Total Nonaccrual Loans                 |   | $          | 65,700 |   |         | $ | 159 |   |   | $ | 86,274 |   |   | $ | - |   |

|  2010(Dollars in Thousands) |   | Commercial, Financial, Agriculture |   |   |  Real Estate |   |    |  Consumer |   |   |  Total Loans |   |
|----------------------------------|--------|------------------------------------|--------|--------|-------------------|--------|---------|----------------|--------|--------|-------------------|--------|
| Special Mention                  |   | $                                  | 20,539 |   |              | $      | 100,008 |           |   | $      | 102               |   |   | $ | 120,649 |   |
| Substandard                      |   |                               | 10,599 |   |              |   | 165,143 |           |   |   | 719               |   |   |   | 176,461 |   |
| Nonaccrual                       |   |                               | 1,060  |   |              |   | 63,773  |           |   |   | 867               |   |   |   | 65,700 |   |
| Total Loans                      |   | $                                  | 32,198 |   |              | $      | 328,924 |           |   | $      | 1,688             |   |   | $ | 362,810 |   |

| 2009(Dollars in Thousands) |   | Commercial, Financial, Agriculture |   |   |  Real Estate |   |    |  Consumer |   |   |  Total Loans |   |
|----------------------------|--------|------------------------------------|--------|--------|-------------------|--------|---------|----------------|--------|--------|-------------------|--------|
| Special Mention            |   | $                                  | 14,376 |   |              | $      | 107,322 |           |   | $      | 152               |   |   | $ | 121,850 |   |
| Substandard                |   |                               | 18,689 |   |              |   | 179,576 |           |   |   | 1,478             |   |   |   | 199,743 |   |
| Nonaccrual                 |   |                               | 2,729  |   |              |   | 81,719  |           |   |   | 1,827             |   |   |   | 86,275 |   |
| Total Loans                |   | $                                  | 35,794 |   |              | $      | 368,617 |           |   | $      | 3,457             |   |   | $ | 407,868 |   |

----

| (Dollars in Thousands)                                  | 2010   |    |   | 2009   |   |    | 2008    |   |
|---------------------------------------------------------|--------|---------|--------|--------|--------|---------|---------|--------|
| Balance, Beginning of Year                              | $      | 43,999  |   |   | $      | 37,004  |    |   | $ | 18,066 |   |
| Provision for Loan Losses                               |   | 23,824  |   |   |   | 40,017  |    |   |   | 32,496 |   |
| Recoveries on Loans Previously Charged-Off              |   | 3,127   |   |   |   | 3,442   |    |   |   | 2,417 |   |
| Loans Charged-Off                                       |   | (35,514 | )      |   |   | (36,072 | )       |   |   | (15,975 | ) |
| Reclassification of Unfunded Reserve to Other Liability |   | -       |   |   |   | (392    | )  |   |   | - |   |
| Balance, End of Year                                    | $      | 35,436  |   |   | $      | 43,999  |    |   | $ | 37,004 |   |

| 2010(Dollars in Thousands)                                          |   | Commercial, Financial, Agricultural |    |   |  Real Estate Construction |   |   |   Real Estate Commercial Mortgage |   |   |   Real Estate Residential |   |   |    Real Estate Home Equity |    |   |   Consumer |   |    |   Unallocated |   |   |   Total |   |
|---------------------------------------------------------------------|--------|-------------------------------------|---------|--------|--------------------------------|--------|--------|---------------------------------------------|--------|--------|-------------------------------------|--------|--------|--------------------------------------|---------|--------|----------------------|--------|---------|-------------------------|--------|--------|-------------------|--------|
| Allowance Allocated to:                                             |   |                                |    |   |                           |   |   |                                        |   |   |                                |   |   |                                 |    |   |                 |   |    |                    |   |   |              |   |
|   Loans Individually Evaluated for   Impairment |   | $                                   | 252     |   |                           | $      | 413    |                                        |   | $      | 4,640                               |   |   | $                                    | 7,965   |   |                 | $      | 1,389   |                    |   | $      | 71                |   |   | $ | - |   |   | $ | 14,730 |   |
|   Loans Collectively Evaluated for  Impairment  |   |                                | 1,292   |   |                           |   | 1,647  |                                        |   |   | 4,005                               |   |   |                                 | 9,081   |   |                 |   | 1,133   |                    |   |   | 2,541             |   |   |   | 1,007 |   |   |   | 20,706 |   |
| Total                                                               |   | $                                   | 1,544   |   |                           | $      | 2,060  |                                        |   | $      | 8,645                               |   |   | $                                    | 17,046  |   |                 | $      | 2,522   |                    |   | $      | 2,612             |   |   | $ | 1,007 |   |   | $ | 35,436 |   |
|                                                                |   |                                |    |   |                           |   |   |                                        |   |   |                                |   |   |                                 |    |   |                 |   |    |                    |   |   |              |   |   |   |   |   |   |   |   |   |
|                                                                |   |                                |    |   |                           |   |   |                                        |   |   |                                |   |   |                                 |    |   |                 |   |    |                    |   |   |              |   |   |   |   |   |   |   |   |   |
| Total Loans:                                                        |   |                                |    |   |                           |   |   |                                        |   |   |                                |   |   |                                 |    |   |                 |   |    |                    |   |   |              |   |   |   |   |   |   |   |   |   |
|   Individually Evaluated for Impairment                   |   | $                                   | 1,685   |   |                           | $      | 2,533  |                                        |   | $      | 42,369                              |   |   | $                                    | 37,779  |   |                 | $      | 3,278   |                    |   | $      | 144               |   |   | $ | - |   |   | $ | 87,788 |   |
|   Collectively Evaluated for Impairment                   |   |                                | 155,709 |   |                           |   | 40,706 |                                        |   |   | 629,333                             |   |   |                                 | 392,762 |   |                 |   | 248,287 |                    |   |   | 204,086           |   |   |   | - |   |   |   | 1,670,883 |   |
| Total                                                               |   | $                                   | 157,394 |   |                           | $      | 43,239 |                                        |   | $      | 671,702                             |   |   | $                                    | 430,541 |   |                 | $      | 251,565 |                    |   | $      | 204,230           |   |   | $ | - |   |   | $ | 1,758,671 |   |

| 2009(Dollars in Thousands)                                         |   | Commercial, Financial, Agricultural |    |   | Real Estate Construction |    |    | Real Estate Commercial Mortgage |   |    | Real Estate Residential |   |   | Real Estate Home Equity |    |   |  Consumer |    |    |  Unallocated |   |    |  Total |   |
|--------------------------------------------------------------------|--------|-------------------------------------|---------|--------|--------------------------|---------|---------|--------------------------------------|--------|---------|-------------------------|--------|--------|-------------------------|---------|--------|----------------|---------|---------|-------------------|--------|---------|-------------|--------|
| Allowance Allocated to:                                            |   |                                |    |   |                     |    |    |                                 |   |    |                    |   |   |                    |    |   |           |    |    |              |   |    |        |   |
|   Loans Individually Evaluated for  Impairment |   | $                                   | 1,070   |   |                     | $  | 8,084   |                                 |   | $  | 5,395                   |   |   | $                  | 5,618   |   |           | $       | 813     |              |   | $       | 86          |   |   | $ | - |   |   | $ | 21,066 |   |
|   Loans Collectively Evaluated for  Impairment |   |                                | 1,339   |   |                     |    | 4,032   |                                 |   |    | 3,356                   |   |   |                    | 8,541   |   |           |    | 1,388   |              |   |    | 3,372       |   |   |   | 905 |   |   |   | 22,933 |   |
| Total                                                              |   | $                                   | 2,409   |   |                     | $       | 12,116  |                                 |   | $       | 8,751                   |   |   | $                       | 14,159  |   |           | $       | 2,201   |              |   | $       | 3,458       |   |   | $ | 905 |   |   | $ | 43,999 |   |
|                                                               |   |                                |    |   |                     |    |    |                                 |   |    |                    |   |   |                    |    |   |           |    |    |              |   |    |        |   |   |   |   |   |   |   |   |   |
|                                                               |   |                                |    |   |                     |    |    |                                 |   |    |                    |   |   |                    |    |   |           |    |    |              |   |    |        |   |   |   |   |   |   |   |   |   |
| Total Loans:                                                       |   |                                |    |   |                     |    |    |                                 |   |    |                    |   |   |                    |    |   |           |    |    |              |   |    |        |   |   |   |   |   |   |   |   |   |
|   Individually Evaluated for Impairment                  |   | $                                   | 4,076   |   |                     | $  | 26,924  |                                 |   | $  | 47,793                  |   |   | $                  | 29,347  |   |           | $  | 3,557   |              |   | $  | 299         |   |   | $  | - |   |   | $  | 111,996 |   |
|   Collectively Evaluated for Impairment                  |   |                                | 184,985 |   |                     |    | 84,324  |                                 |   |    | 668,998                 |   |   |                    | 387,122 |   |           |    | 243,165 |              |   |    | 235,350     |   |   |   | - |   |   |   | 1,803,944 |   |
| Total                                                              |   | $                                   | 189,061 |   |                     | $       | 111,248 |                                 |   | $       | 716,791                 |   |   | $                       | 416,469 |   |           | $       | 246,722 |              |   | $       | 235,649     |   |   | $ | - |   |   | $ | 1,915,940 |   |

----

|  (Dollars in Thousands)           |   | Unpaid Principal Balance |    |   |  Recorded Investment With No Allowance |   |   |  Recorded Investment With Allowance |   |   |    Related Allowance |   |   |   Average Recorded Investment |   |
|----------------------------------------|--------|--------------------------|---------|--------|---------------------------------------------|--------|--------|------------------------------------------|--------|--------|-------------------------------------|--------|--------|-----------------------------------------|--------|
| 2010:                                  |   |                     |    |   |                                        |   |   |                                     |   |   |                                |   |   |                                    |   |
| Commercial, Financial and Agricultural |   | $                        | 1,684   |   |                                        | $      | 389    |                                     |   | $      | 1,295                               |   |   | $                                       | 252    |   |   | $ | 2,768 |   |
| Real Estate - Construction             |   |                     | 2,533   |   |                                        |   | -      |                                     |   |   | 2,533                               |   |   |                                    | 413    |   |   |   | 5,801 |   |
| Real Estate - Commercial Mortgage      |   |                     | 42,370  |   |                                        |   | 9,030  |                                     |   |   | 33,340                              |   |   |                                    | 4,640  |   |   |   | 48,820 |   |
| Real Estate -  Residential   |   |                     | 37,780  |   |                                        |   | 3,295  |                                     |   |   | 34,485                              |   |   |                                    | 7,965  |   |   |   | 41,958 |   |
| Real Estate - Home Equity              |   |                     | 3,278   |   |                                        |   | 375    |                                     |   |   | 2,903                               |   |   |                                    | 1,389  |   |   |   | 3,087 |   |
| Consumer                               |   |                     | 143     |   |                                        |   | -      |                                     |   |   | 143                                 |   |   |                                    | 71     |   |   |   | 172 |   |
| Total                                  |   | $                        | 87,788  |   |                                        | $      | 13,089 |                                     |   | $      | 74,699                              |   |   | $                                       | 14,730 |   |   | $ | 102,606 |   |
|                                   |   |                     |    |   |                                        |   |   |                                     |   |   |                                |   |   |                                    |   |   |   |   |   |   |
|                                   |   |                     |    |   |                                        |   |   |                                     |   |   |                                |   |   |                                    |   |   |   |   |   |   |
| 2009:                                  |   |                     |    |   |                                        |   |   |                                     |   |   |                                |   |   |                                    |   |   |   |   |   |   |
| Commercial, Financial and Agricultural |   | $                        | 4,076   |   |                                        | $      | 1,473  |                                     |   | $      | 2,603                               |   |   | $                                       | 1,070  |   |   | $ | 3,033 |   |
| Real Estate - Construction             |   |                     | 26,924  |   |                                        |   | 1,413  |                                     |   |   | 25,511                              |   |   |                                    | 8,084  |   |   |   | 31,426 |   |
| Real Estate - Commercial Mortgage      |   |                     | 47,793  |   |                                        |   | 19,207 |                                     |   |   | 28,586                              |   |   |                                    | 5,395  |   |   |   | 43,789 |   |
| Real Estate -  Residential   |   |                     | 29,347  |   |                                        |   | 4,391  |                                     |   |   | 24,956                              |   |   |                                    | 5,618  |   |   |   | 38,683 |   |
| Real Estate - Home Equity              |   |                     | 3,557   |   |                                        |   | 1,423  |                                     |   |   | 2,134                               |   |   |                                    | 813    |   |   |   | 3,630 |   |
| Consumer                               |   |                     | 299     |   |                                        |   | 9      |                                     |   |   | 290                                 |   |   |                                    | 86     |   |   |   | 405 |   |
| Total                                  |   | $                        | 111,996 |   |                                        | $      | 27,916 |                                     |   | $      | 84,080                              |   |   | $                                       | 21,066 |   |   | $ | 120,966 |   |

|                             | 2010        |    |                    | 2009   |   |
|----------------------------------|-------------|---------|-------------------------|--------|--------|
| (Dollars in Thousands)           | GrossAmount |    | AccumulatedAmortization |   |   | GrossAmount |   |   | AccumulatedAmortization |   |
| Core Deposits Intangibles        | $           | 47,176  |                    | $      | 46,434 |   |   | $ | 47,176 |   |   | $ | 43,943 |   |
| Goodwill                         |        | 84,811  |                    |   | -      |   |   |   | 84,811 |   |   |   | - |   |
| Customer Relationship Intangible |        | 1,867   |                    |   | 1,261  |   |   |   | 1,867 |   |   |   | 1,070 |   |
| Total Intangible Assets          | $           | 133,854 |                    | $      | 47,695 |   |   | $ | 133,854 |   |   | $ | 45,013 |   |

----

| (Dollars in Thousands)      |   | 2010   |    |   | 2009   |   |
|-----------------------------|--------|--------|---------|--------|--------|--------|
| Land                        |   | $      | 24,439  |   |   | $      | 24,408 |   |
| Buildings                   |   |   | 115,031 |   |   |   | 111,649 |   |
| Fixtures and Equipment      |   |   | 57,414  |   |   |   | 54,493 |   |
| Total                       |   |   | 196,884 |   |   |   | 190,550 |   |
| Accumulated Depreciation    |   |   | (81,528 | )      |   |   | (75,111 | ) |
| Premises and Equipment, Net |   | $      | 115,356 |   |   | $      | 115,439 |   |

| (Dollars in Thousands) |   | 2010   |      |   | 2009   |   |
|------------------------|--------|--------|-----------|--------|--------|--------|
| NOW Accounts           |   | $      | 770,149   |   |   | $      | 899,649 |   |
| Money Market Accounts  |   |   | 275,416   |   |   |   | 373,105 |   |
| Savings Accounts       |   |   | 139,888   |   |   |   | 122,370 |   |
| Time Deposits          |   |   | 372,266   |   |   |   | 435,319 |   |
| Total                  |   | $      | 1,557,719 |   |   | $      | 1,830,443 |   |

| (Dollars in Thousands) |   |   |    |
|------------------------|--------|--------|---------|
| 2011                   |   | $      | 321,547 |   |
| 2012                   |   |   | 36,037  |   |
| 2013                   |   |   | 10,099  |   |
| 2014                   |   |   | 1,896   |   |
| 2015 and thereafter    |   |   | 2,687   |   |
| Total                  |   | $      | 372,266 |   |

| (Dollars in Thousands)      |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| NOW Accounts                |   | $      | 1,406  |   |   | $      | 1,039  |   |   | $ | 7,454 |   |
| Money Market Accounts       |   |   | 1,299  |   |   |   | 1,288  |   |   |   | 5,242 |   |
| Savings Accounts            |   |   | 65     |   |   |   | 60     |   |   |   | 121 |   |
| Time Deposits < $100,000 |   |   | 4,602  |   |   |   | 5,362  |   |   |   | 10,199 |   |
| Time Deposits > $100,000 |   |   | 1,273  |   |   |   | 2,836  |   |   |   | 4,290 |   |
| Total                       |   | $      | 8,645  |   |   | $      | 10,585 |   |   | $ | 27,306 |   |

----

| (Dollars in Thousands)                     |   | FederalFundsPurchased |   |   | SecuritiesSold UnderRepurchaseAgreements(1) |   |   | OtherShort-TermBorrowings |   |   |
|--------------------------------------------|--------|-----------------------|--------|--------|---------------------------------------------|--------|--------|---------------------------|--------|--------|
| 2010                                       |   |                  |   |   |                                        |   |   |                      |   |   |
| Balance at December 31,                    |   | $                     | 10,275 |   |                                        | $      | 71,633 |                      |   | $      | 11,020 |  (2 | )  |
| Maximum indebtedness at any month end      |   |                  | 12,550 |   |                                        |   | 71,633 |                      |   |   | 11,792 |   |   |
| Daily average indebtedness outstanding     |   |                  | 6,269  |   |                                        |   | 16,733 |                      |   |   | 4,861 |   |   |
| Average rate paid for the year             |   |                  | 0.02   | %      |                                        |   | 0.12   | %                         |   |   | 2.84 | % |   |
| Average rate paid on period-end borrowings |   |                  | 0.01   | %      |                                        |   | 0.10   | %                         |   |   | 3.37 | % |   |
|                                       |   |                  |   |   |                                        |   |   |                      |   |   |   |   |   |
| 2009                                       |   |                  |   |   |                                        |   |   |                      |   |   |   |   |   |
| Balance at December 31,                    |   | $                     | 8,350  |   |                                        | $      | 25,520 |                      |   | $      | 1,972 |  (2 | )  |
| Maximum indebtedness at any month end      |   |                  | 93,400 |   |                                        |   | 46,672 |                      |   |   | 21,434 |   |   |
| Daily average indebtedness outstanding     |   |                  | 41,702 |   |                                        |   | 31,270 |                      |   |   | 6,349 |   |   |
| Average rate paid for the year             |   |                  | 0.56   | %      |                                        |   | 0.08   | %                         |   |   | 0.44 | % |   |
| Average rate paid on period-end borrowings |   |                  | 0.01   | %      |                                        |   | 0.18   | %                         |   |   | 2.79 | % |   |
|                                       |   |                  |   |   |                                        |   |   |                      |   |   |   |   |   |
| 2008                                       |   |                  |   |   |                                        |   |   |                      |   |   |   |   |   |
| Balance at December 31,                    |   | $                     | 19,875 |   |                                        | $      | 40,868 |                      |   | $      | 1,302 |  (2 | )  |
| Maximum indebtedness at any month end      |   |                  | 36,700 |   |                                        |   | 40,868 |                      |   |   | 14,087 |   |   |
| Daily average indebtedness outstanding     |   |                  | 19,777 |   |                                        |   | 32,433 |                      |   |   | 8,971 |   |   |
| Average rate paid for the year             |   |                  | 1.58   | %      |                                        |   | 1.50   | %                         |   |   | 3.93 | % |   |
| Average rate paid on period-end borrowings |   |                  | 0.56   | %      |                                        |   | 0.11   | %                         |   |   | 0.41 | % |   |

| (1) | Balances are fully collateralized by government treasury or agency securities held in the Company’s investment portfolio. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes FHLB debt and client tax deposit balances of $10.0 million and $1.0 million, respectively at December 31, 2010, $0.6 million and $1.4 million, respectively at December 31, 2009, and $0.1 million and $1.2 million, respectively at December 31, 2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Dollars in Thousands)                        | 2010    |                                                                                                                | 2009   |    |
|-----------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------|--------|---------|
| Due on November 10, 2010, fixed rate 4.72%(1) |    |                    - |   |    |                 634 | (1) |
| Due on September 08, 2011, fixed rate 3.65%   |    | 10,000                                                                                                              | (1)    |    | 10,000 |   |
| Due on December 18, 2012, fixed rate 4.84%    |    |                    - |   |    |                 491 |   |
| Due on March 13, 2013, fixed rate 3.55%       |    |              1,118                                 |   |    |              1,154 |   |
| Due on March 18, 2013, fixed rate 3.31%       |    |                 376                 |   |    |                 388 |   |
| Due on March 18, 2013, fixed rate 6.37%       |    |                 241                 |   |    |                 335 |   |
| Due on April 17, 2013, fixed rate 3.42%       |    |                 954                 |   |    |              1,057 |   |
| Due on April 17, 2013, fixed rate 3.50%       |    |              1,592                                 |   |    |              1,644 |   |
| Due on May 15, 2013, fixed rate 3.81%         |    |                 915                 |   |    |                 944 |   |
| Due on May 15, 2013, fixed rate 3.81%         |    |              1,057                                 |   |    |              1,089 |   |
| Due on June 17, 2013, fixed rate 3.85%        |    |                   74      |   |    |                   78 |   |
| Due on June 17, 2013, fixed rate 4.11%        |    |              1,456                                 |   |    |              1,529 |   |
| Due on September 23, 2013, fixed rate 5.64%   |    |                 387                 |   |    |                 509 |   |
| Due on January 13, 2014, fixed rate 2.96%     |    |              1,600                                 |   |    |              1,600 |   |
| Due on January 26, 2014, fixed rate 5.79%     |    |                 919                 |   |    |                 996 |   |
| Due on January 27, 2014, fixed rate 5.31%     |    |              1,417                                 |   |    |              1,497 |   |
| Due on February 14, 2014, fixed rate 3.08%    |    |              1,066                                 |   |    |              1,066 |   |
| Due on May 27, 2014, fixed rate 5.92%         |    |                 221                 |   |    |                 279 |   |
| Due on May 31, 2014, fixed rate 4.88%         |    |              1,560                                 |   |    |              1,968 |   |
| Due on February 23, 2015, fixed rate 4.07%    |    |                 698                 |   |    |                 712 |   |
| Due on March 16, 2015, fixed rate 2.88%       |    |                 590                 |   |    |                    - |   |
| Due on April 21, 2015, fixed rate 2.89%       |    |              1,507                                 |   |    |                    - |   |
| Due on August 17, 2015, fixed rate 4.31%      |    |                 493                 |   |    |                 541 |   |
| Due on October 15, 2015, fixed rate 4.11%     |    |                 680                 |   |    |                 714 |   |
| Due on July 20, 2016, fixed rate 6.27%        |    |                 661                 |   |    |                 779 |   |
| Due on October 3, 2016, fixed rate 5.41%      |    |                 175                 |   |    |                 205 |   |
| Due on October 31, 2016, fixed rate 5.16%     |    |                 389                 |   |    |                 456 |   |
| Due on March 1, 2017, fixed rate 3.62%        |    |                 525                 |   |    |                    - |   |
| Due on June 27, 2017, fixed rate 5.53%        |    |                 455                 |   |    |                 525 |   |
| Due on June 30, 2017, fixed rate 2.77%        |    |              1,076                                 |   |    |                    - |   |
| Due on July 7, 2017, fixed rate 2.88%         |    |              1,607                                 |   |    |                    - |   |
| Due on October 10, 2017, fixed rate 2.22%     |    |              3,243                                 |   |    |                    - |   |
| Due on October 18, 2017, fixed rate 2.18%     |    |              1,172                                 |   |    |                    - |   |
| Due on October 31, 2017, fixed rate 4.79%     |    |                 569                 |   |    |                 653 |   |
| Due on December 11, 2017, fixed rate 4.78%    |    |                 510                 |   |    |                 583 |   |
| Due on February 22, 2018, fixed rate 4.61%    |    |              1,345                                 |   |    |              1,386 |   |
| Due on April 10, 2018, fixed rate 4.20%       |    |              1,174                                 |   |    |              1,196 |   |
| Due on April 10, 2018, fixed rate 4.20%       |    |                 975                 |   |    |                 993 |   |
| Due on September 17, 2018, fixed rate 4.23%   |    |              2,775                                 |   |    |              2,896 |   |
| Due on September 18, 2018, fixed rate 5.15%   |    |                 372                 |   |    |                 420 |   |
| Due on November 5, 2018, fixed rate 5.10%     |    |              2,916                                 |   |    |              3,072 |   |
| Due on December 3, 2018, fixed rate 4.87%     |    |                 393                 |   |    |                 442 |   |
| Due on December 17, 2018, fixed rate 6.33%    |    |              1,111                                 |   |    |              1,214 |   |
| Due on January 21, 2020, fixed rate 4.20%     |    |                 783                 |   |    |                    - |   |
| Due on February 12, 2020, fixed rate 4.11%    |    |                 500                 |   |    |                    - |   |
| Due on May 27, 2020, fixed rate 3.28%         |    |              2,823                                 |   |    |                    - |   |
| Due on February 16, 2021, fixed rate 3.00%    |    |                 648                 |   |    |                 693 |   |
| Due on January 18, 2022, fixed rate 5.25%     |    |                 895                 |   |    |                 915 |   |
| Due on May 30, 2023, fixed rate 2.50%         |    |                 774                 |   |    |                 817 |   |
| Due on June 15, 2023, fixed rate 4.77%        |    |                 417                 |   |    |                 450 |   |
| Due on July 1, 2025, fixed rate 4.80%         |    |              2,897                                 |   |    |              3,095 |   |
| Total Outstanding                             |  $ |               60,101                          |   | $  |               50,015 |   |

| (1) | $10.0 million is classified as short-term borrowings as of December 31, 2010 and $0.6 million classified as short-term borrowings as of December 31, 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Dollars in Thousands) |   |   |                                                                                |
|------------------------|--------|--------|-------------------------------------------------------------------------------------|
| 2011                   |   | $      |            13,372            | (1) |
| 2012                   |   |   |              3,539 |   |
| 2013                   |   |   |              9,976 |   |
| 2014                   |   |   |              7,082 |   |
| 2015                   |   |   |              5,646 |   |
| 2016 and thereafter    |   |   |            20,486            |   |
| Total                  |   | $      |  $    60,101                                               |   |

| (1) | $10.0 million is classified as short-term borrowings. |
|-----|-------------------------------------------------------|

----

| (Dollars in Thousands) | 2010   |   |    | 2009   |   |   | 2008    |   |
|------------------------|--------|--------|---------|--------|--------|--------|---------|--------|
| Current:               |   |   |    |   |   |   |    |   |
| Federal                | $      | (5,392 | )  |   | $      | 2,340  |    |   | $ | 11,730 |   |
| State                  |   | 525    |    |   |   | 417    |    |   |   | 510 |   |
| Deferred:              |   |   |    |   |   |   |    |   |   |   |   |
| Federal                |   | 3,990  |    |   |   | (5,767 | )       |   |   | (4,882 | ) |
| State                  |   | (2,158 | )       |   |   | (2,475 | )       |   |   | (1,289 | ) |
| Valuation Allowance    |   | 66     |    |   |   | 149    |    |   |   | 644 |   |
| Total                  | $      | (2,969 | )  |   | $      | (5,336 | )  |   | $ | 6,713 |   |

| (Dollars in Thousands)                       | 2010   |      |    | 2009   |   |      | 2008    |   |
|----------------------------------------------|--------|-----------|---------|--------|--------|-----------|---------|--------|
| Tax Expense at Federal Statutory Rate        | $      | (1,184    | )  |   | $      | (3,083    | )  |   | $ | 7,678 |   |
| Increases (Decreases) Resulting From:        |   |      |    |   |   |      |    |   |   |   |   |
| Tax-Exempt Interest Income                   |   | (955      | )       |   |   | (1,533    | )       |   |   | (1,663 | ) |
| Change in Reserve for Uncertain Tax Position |   |  127 |    |   |   |  687 |    |   |   |  - |   |
| State Taxes, Net of Federal Benefit          |   | (1,062    | )       |   |   | (1,337    | )       |   |   | (506 | ) |
| Other                                        |   | 39        |    |   |   | (219      | )  |   |   | 560 |   |
| Change in Valuation Allowance                |   | 66        |    |   |   | 149       |    |   |   | 644 |   |
| Actual Tax Expense                           | $      | (2,969    | )  |   | $      | (5,336    | )  |   | $ | 6,713 |   |

| (Dollars in Thousands)                                   | 2010   |   | 2009   |   |
|----------------------------------------------------------|--------|--------|--------|--------|
| Deferred Tax Assets attributable to:                     |   |   |   |   |
| Allowance for Loan Losses                                | $      | 13,671 |   | $      | 16,975 |   |
| Associate Benefits                                       |   | 297    |   |   | 297 |   |
| Accrued Pension/SERP                                     |   | 10,313 |   |   | 9,685 |   |
| Interest on Nonperforming Loans                          |   | 807    |   |   | 2,971 |   |
| State Net Operating Loss Carry Forwards                  |   | 3,541  |   |   | 1,786 |   |
| Intangible Assets                                        |   | 173    |   |   | 147 |   |
| Core Deposit Intangible                                  |   | 3,195  |   |   | 3,144 |   |
| Contingency Reserve                                      |   | 52     |   |   | 373 |   |
| Accrued Expense                                          |   | 466    |   |   | 458 |   |
| Leases                                                   |   | 407    |   |   | 433 |   |
| Other Real Estate Owned                                  |   | 7,052  |   |   | 4,136 |   |
| Other Than Temporary Impairment of Investment Securities |   | 231    |   |   | - |   |
| Other                                                    |   | 777    |   |   | 614 |   |
| Total Deferred Tax Assets                                | $      | 40,982 |   | $      | 41,019 |   |
|                                                     |   |   |   |   |   |   |
| Deferred Tax Liabilities attributable to:                |   |   |   |   |   |   |
| Depreciation on Premises and Equipment                   | $      | 6,411  |   | $      | 4,492 |   |
| Deferred Loan Fees and Costs                             |   | 4,127  |   |   | 4,413 |   |
| Net Unrealized Gains on Investment Securities            |   | 677    |   |   | 749 |   |
| Intangible Assets                                        |   | 2,519  |   |   | 2,219 |   |
| Accrued Pension/SERP                                     |   | 4,256  |   |   | 6,850 |   |
| Securities Accretion                                     |   | 2      |   |   | 9 |   |
| Market Value on Loans Held for Sale                      |   | 72     |   |   | 28 |   |
| Other                                                    |   | 1,560  |   |   | - |   |
| Total Deferred Tax Liabilities                           |   | 19,624 |   |   | 18,760 |   |
| Valuation Allowance                                      |   | 859    |   |   | 793 |   |
| Net Deferred Tax Assets                                  | $      | 20,499 |   | $      | 21,466 |   |

----

| (Dollars in Thousands)                                                               | 2010   |   |    | 2009   |   |
|--------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
| Balance at Beginning of Year                                                         | $      | 21,466 |    |   | $      | 17,768 |   |
| Income Tax (Expense) Benefit From Change in Pension Liability                        |   | 628    |    |   |   | (4,442 | )  |
| Income Tax Benefit From Change in Unrealized Losses on Available-for-Sale Securities |   | 72     |    |   |   | 47 |   |
| Income Tax Benefit From Changes in Other Temporary Impairment of Securities          |   | 231    |    |   |   | - |   |
| Deferred Income Tax (Expense) Benefit on Continuing Operations                       |   | (1,898 | )  |   |   | 8,093 |   |
| Balance at End of Year                                                               | $      | 20,499 |    |   | $      | 21,466 |   |

| (Dollars in Thousands)                                              | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Balance at January 1,                                               | $      | 4,589  |   |   | $      | 3,916  |   |   | $ | 3,254 |   |
| Additions Based on Tax Positions Related to Current  Year |   | 611    |   |   |   | 673    |   |   |   | 914 |   |
| Decrease Due to Lapse in Statue of Limitations                      |   | (430   | )      |   |   | -      |   |   |   | - |   |
| Decrease Based on Tax Positions Related to Prior Year               |   | -      |   |   |   | -      |   |   |   | (252 | ) |
| Balance at December 31                                              | $      | 4,770  |   |   | $      | 4,589  |   |   | $ | 3,916 |   |

----

| Options                          |   | Shares |   |   | Weighted-Average Exercise Price |   |   | Weighted-Average Remaining Contractual Term |   |   | Aggregate Intrinsic Value |   |
|----------------------------------|--------|--------|--------|--------|---------------------------------|--------|--------|---------------------------------------------|--------|--------|---------------------------|--------|
| Outstanding at January 1, 2010   |   |   | 60,384 |   |                            | $      | 32.79  |                                        |   | $      | 4.9                       |   |   | $ | - |   |
| Granted                          |   |   | -      |   |                            |   | -      |                                        |   |   | -                         |   |   |   | - |   |
| Exercised                        |   |   | -      |   |                            |   | -      |                                        |   |   | -                         |   |   |   | - |   |
| Forfeited or expired             |   |   | -      |   |                            |   | -      |                                        |   |   | -                         |   |   |   | - |   |
| Outstanding at December 31, 2010 |   |   | 60,384 |   |                            | $      | 32.79  |                                        |   | $      | 3.9                       |   |   | $ | - |   |
| Exercisable at December 31, 2010 |   |   | 60,384 |   |                            | $      | 32.79  |                                        |   | $      | 3.9                       |   |   | $ | - |   |

----

|                     |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Dividend yield           |   |   | 4.4    | %      |   |   | 3.7    | %      |   |   | 3.0 | % |
| Expected volatility      |   |   | 41.0   | %      |   |   | 67.5   | %      |   |   | 37.0 | % |
| Risk-free interest rate  |   |   | 0.2    | %      |   |   | 0.3    | %      |   |   | 2.6 | % |
| Expected life (in years) |   |   | 0.5    |   |   |   | 0.5    |   |   |   | 0.5 |   |

----

|  (Dollars in Thousands)                                                                    | 2010     |                                                                   |   | 2009     |   |                                                                   | 2008     |   |
|-------------------------------------------------------------------------------------------------|----------|------------------------------------------------------------------------|--------|----------|--------|------------------------------------------------------------------------|----------|--------|
| Change in Projected Benefit Obligation:                                                         |     |                                                                   |   |     |   |                                                                   |     |   |
| Benefit Obligation at Beginning of Year                                                         | $        |    83,749                                               |   |     | $      |    79,607                                               |     |   | $ |    70,118 |   |
| Service Cost                                                                                    |     |          5,691            |   |     |   |          5,593            |     |   |   |          5,351 |   |
| Interest Cost                                                                                   |     |          4,733            |   |     |   |          4,588            |     |   |   |          4,482 |   |
| Actuarial Loss/(Gain)                                                                           |     | 5,201                                                                  |   |     |   | (2,977                                                                 | )        |   |   |          4,038 |   |
| Benefits Paid                                                                                   |     |         (1,776                 | )      |     |   |         (2,829                 | )        |   |   |         (6,483 | ) |
| Expenses Paid                                                                                   |     |            (205 | )      |     |   |            (233 | )        |   |   |            (165 | ) |
| Plan Change(1)                                                                                  |     | -                                                                      |   |     |   | -                                                                      |     |   |   | 2,266 |   |
| Projected Benefit Obligation at End of Year                                                     | $        | 97,393                                                                 |   |     | $      | 83,749                                                                 |     |   | $ | 79,607 |   |
|                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Accumulated Benefit Obligation at End of Year                                                   | $        | 77,100                                                                 |   |     | $      | 64,889                                                                 |     |   | $ | 56,368 |   |
|                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Change in Plan Assets:                                                                          |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Fair Value of Plan Assets at Beginning of Year                                                  | $        |     79,547                                         |   |     | $      |     66,363                                         |     |   | $ |     75,653 |   |
| Actual Gain/(Loss) Return on Plan Assets                                                        |     | 7,092                                                                  |   |     |   | 8,246                                                                  |     |   |   | (14,642 | )  |
| Employer Contributions                                                                          |     |        -                            |   |     |   |        8,000                        |     |   |   |        12,000 |   |
| Benefits Paid                                                                                   |     |         (1,776                 | )      |     |   |         (2,829                 | )        |   |   |         (6,483 | ) |
| Expenses Paid                                                                                   |     |            (205 | )      |     |   |            (233 | )        |   |   |            (165 | ) |
| Fair Value of Plan Assets at End of Year                                                        | $        | 84,658                                                                 |   |     | $      | 79,547                                                                 |     |   | $ | 66,363 |   |
|                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Amounts Recognized in the Consolidated Statements of Financial Condition:                       |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Other Assets                                                                                    | $        | -                                                                      |   |     | $      | -                                                                      |     |   | $ | - |   |
| Other Liabilities                                                                               |     | 12,735                                                                 |   |     |   | 4,202                                                                  |     |   |   | 13,245 |   |
|                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Amounts (Pre-Tax) Recognized in Accumulated Other Comprehensive Income:                         |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Net Actuarial Losses                                                                            | $        | 25,438                                                                 |   |     | $      | 23,224                                                                 |     |   | $ | 32,341 |   |
| Prior Service Cost                                                                              |     | 2,351                                                                  |   |     |   | 2,860                                                                  |     |   |   | 3,369 |   |
|                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Components of Net Periodic Benefit Costs:                                                       |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Service Cost                                                                                    | $        | 5,691                                                                  |   |     | $      | 5,593                                                                  |     |   | $ | 5,351 |   |
| Interest Cost                                                                                   |     | 4,733                                                                  |   |     |   | 4,588                                                                  |     |   |   | 4,482 |   |
| Expected Return on Plan Assets                                                                  |     | (6,194                                                                 | )      |     |   | (5,060                                                                 | )        |   |   | (5,921 | ) |
| Amortization of Prior Service Costs                                                             |     | 509                                                                    |   |     |   | 509                                                                    |     |   |   | 509 |   |
| Recognized Net Actuarial Loss                                                                   |     | 2,088                                                                  |   |     |   | 2,954                                                                  |     |   |   | 882 |   |
| Net Periodic Benefit Cost                                                                       | $        | 6,827                                                                  |   |     | $      | 8,584                                                                  |     |   | $ | 5,303 |   |
|                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Assumptions:                                                                                    |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Weighted-average used to determine benefit obligations:                                         |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Discount Rate                                                                                   |     | 5.55                                                                   | %      |     |   | 5.75                                                                   | %        |   |   | 6.00 | % |
| Expected Return on Plan Assets                                                                  |     | 8.00                                                                   | %      |     |   | 8.00                                                                   | %        |   |   | 8.00 | % |
| Rate of Compensation Increase                                                                   |     | 4.25                                                                   | %      |     |   | 4.50                                                                   | %        |   |   | 5.50 | % |
| Measurement Date                                                                                | 12/31/10 |                                                                   |   | 12/31/09 |   |                                                                   | 12/31/08 |   |
|                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Weighted-average used to determine net cost:                                                    |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| Discount Rate                                                                                   |     | 5.75                                                                   | %      |     |   | 6.00                                                                   | %        |   |   | 6.25 | % |
| Expected Return on Plan Assets                                                                  |     | 8.00                                                                   | %      |     |   | 8.00                                                                   | %        |   |   | 8.00 | % |
| Rate of Compensation Increase                                                                   |     | 4.50                                                                   | %      |     |   | 5.50                                                                   | %        |   |   | 5.50 | % |
|                                                                                            |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |
| (1) In 2008, the employee benefits plan was amended to include stock as plan compensation. |     |                                                                   |   |     |   |                                                                   |     |   |   |   |   |

----

| (Dollars in Thousands)        |   |   |   |   |
|-------------------------------|--------|--------|--------|--------|
| Actuarial Loss                |   | $      | 2,211  |   |
| Prior Service Cost            |   |   | 462    |   |
|     Total |   | $      | 2,673  |   |

|              | Target Allocation |   |   | Percentage of PlanAssets at Year-End(1) |   |
|-------------------|-------------------|--------|--------|-----------------------------------------|--------|
|              | 2011              |   |   | 2010                                    |   |   | 2009 |   |
| Equity Securities | 65                | %      |   |                                    | 50     | % |   |   | 45 | % |
| Debt Securities   | 30                | %      |   |                                    | 36     | % |   |   | 26 | % |
| Cash Equivalent   | 5                 | %      |   |                                    | 14     | % |   |   | 29 | % |
| Total             | 100               | %      |   |                                    | 100    | % |   |   | 100 | % |

| (1) | Represents asset allocation at year-end which may differ from the average target allocation for the year due to the year-end cash contribution to the plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (Dollars in Thousands)                                               |   | 2010   |   | 2009   |   |
|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Level 1:                                                                   |   |   |   |   |   |   |
|     U.S. Treasury                                           |   | $      | 4,837  |   |   | $ | 5,375 |   |
|     Common Stocks                                           |   |   | 11,935 |   |   |   | 9,469 |   |
|     Mutual Funds                                            |   |   | 40,267 |   |   |   | 30,795 |   |
|     Cash and Cash Equivalents                               |   |   | 11,374 |   |   |   | 21,756 |   |
|                                                                       |   |   |   |   |   |   |   |   |
| Level 2:                                                              |   |   |   |   |   |   |   |   |
|     U.S. Government Agencies and Corporations               |   |   | 16,245 |   |   |   | 12,152 |   |
|                                                                       |   |   |   |   |   |   |   |   |
|         Total Fair Value of Plan Assets |   | $      | 84,658 |   |   | $ | 79,547 |   |

----

| (Dollars in Thousands) |   |   |   |   |
|------------------------|--------|--------|--------|--------|
| 2011                   |   | $      | 4,060  |   |
| 2012                   |   |   | 4,941  |   |
| 2013                   |   |   | 5,675  |   |
| 2014                   |   |   | 6,711  |   |
| 2015                   |   |   | 8,551  |   |
| 2016 through 2020      |   |   | 42,044 |   |
| Total                  |   | $      | 71,982 |   |

|   (Dollars in Thousands) | 2010(1) |   | 2009    |   | Expected Range of Contribution2011(2) |
|------------------------------------|---------|--------|---------|--------|---------------------------------------|
| Actual Contributions               | $ -     |   | $ 8,000 |   | $  -                        |

| (1) | For 2010, the Company did not make a contribution to its pension plan due to adequacy of its funding level. |
|-----|-------------------------------------------------------------------------------------------------------------|

| (2) | For 2011, the Company anticipates that it will not have a minimum funding requirement – funding will be at management discretion in consideration of 2011 plan experience. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (Dollars in Thousands)                                                    | 2010     |                                                                                  |    | 2009     |   |                                                                                   | 2008     |   |
|---------------------------------------------------------------------------|----------|---------------------------------------------------------------------------------------|---------|----------|--------|----------------------------------------------------------------------------------------|----------|--------|
| Change in Projected Benefit Obligation:                                   |     |                                                                                  |    |     |   |                                                                                   |     |   |
| Benefit Obligation at Beginning of Year                                   | $        |      3,174                                                   |    |     | $      |      5,033                                                    |     |   | $ | 3,706 |   |
| Service Cost                                                              |     |               - |    |     |   |               20 |     |   |   | 31 |   |
| Interest Cost                                                             |     |             150           |    |     |   |             178            |     |   |   | 287 |   |
| Actuarial Gain                                                            |     |          (323                            | )       |     |   |          (2,057                           | )        |   |   | (180 | ) |
| Plan Change(1)                                                            |     |          -                               |    |     |   |          -                                |     |   |   | 1,190 |   |
| Projected Benefit Obligation at End of Year                               | $        |    3,001                                                               |    |     | $      |    3,174                                                                |     |   | $ | 5,034 |   |
|                                                                      |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Accumulated Benefit Obligation at End of Year                             | $        | 2,996                                                                                 |    |     | $      | 2,889                                                                                  |     |   | $ | 2,899 |   |
|                                                                      |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Amounts Recognized in the Consolidated Statements of Financial Condition: |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Other Liabilities                                                         | $        |            3,001               |    |     | $      |            3,174                |     |   | $ | 5,034 |   |
|                                                                      |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Amounts (Pre-Tax) Recognized in Accumulated Other Comprehensive Income:   |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Net Actuarial Gain                                                        | $        | (1,753                                                                                | )  |     | $      | (1,854                                                                                 | )   |   | $ | (148 | )  |
| Prior Service Cost                                                        |     | 694                                                                                   |    |     |   | 874                                                                                    |     |   |   | 1,055 |   |
|                                                                      |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Components of Net Periodic Benefit Costs:                                 |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Service Cost                                                              | $        | -                                                                                     |    |     | $      | 20                                                                                     |     |   | $ | 31 |   |
| Interest Cost                                                             |     | 150                                                                                   |    |     |   | 178                                                                                    |     |   |   | 287 |   |
| Amortization of Prior Service Cost                                        |     | 180                                                                                   |    |     |   | 180                                                                                    |     |   |   | 180 |   |
| Recognized Net Actuarial (Gain)Loss                                       |     |            (424                | )       |     |   |            (350                 | )        |   |   |            (36 | ) |
| Net Periodic Benefit Cost                                                 | $        | (94                                                                                   | )  |     | $      | 28                                                                                     |     |   | $ | 462 |   |
|                                                                      |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Assumptions:                                                              |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Weighted-average used to determine the benefit obligations:               |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Discount Rate                                                             |     | 5.55                                                                                  | %       |     |   | 5.75                                                                                   | %        |   |   | 6.00 | % |
| Rate of Compensation Increase                                             |     | 4.25                                                                                  | %       |     |   | 4.50                                                                                   | %        |   |   | 5.50 | % |
| Measurement Date                                                          | 12/31/10 |                                                                                  |    | 12/31/09 |   |                                                                                   | 12/31/08 |   |
|                                                                      |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Weighted-average used to determine the net cost:                          |     |                                                                                  |    |     |   |                                                                                   |     |   |   |   |   |
| Discount Rate                                                             |     | 5.75                                                                                  | %       |     |   | 6.00                                                                                   | %        |   |   | 6.25 | % |
| Rate of Compensation Increase                                             |     | 4.50                                                                                  | %       |     |   | 5.50                                                                                   | %        |   |   | 5.50 | % |

| (1) | In 2008, the SERP plan was amended to include stock as plan compensation. |
|-----|---------------------------------------------------------------------------|

----

| (Dollars in Thousands) |   |   |   |   |
|------------------------|--------|--------|--------|--------|
| 2011                   |   | $      | 266    |   |
| 2012                   |   |   | 289    |   |
| 2013                   |   |   | 277    |   |
| 2014                   |   |   | 310    |   |
| 2015                   |   |   | 353    |   |
| 2016 through 2020      |   |   | 591    |   |
|   Total           |   | $      | 2,086  |   |

| (Dollars in Thousands, Except Per Share Data)                                                       | 2010   |       | 2009   |   | 2008       |   |
|-----------------------------------------------------------------------------------------------------|--------|------------|--------|--------|------------|--------|
| Numerator:                                                                                          |   |       |   |   |       |   |
| Net (Loss) Income                                                                                   | $      | (413)      |   | $      | (3,471)    |   | $ | 15,225 |   |
|                                                                                                |   |       |   |   |       |   |   |   |   |
| Denominator:                                                                                        |   |       |   |   |       |   |   |   |   |
| Denominator for Basic Earnings Per Share Weighted-Average Shares                                    |   | 17,075,867 |   |   | 17,043,964 |   |   | 17,141,454 |   |
| Effects of Dilutive Securities Stock Compensation Plans                                             |   | 857        |   |   | 747        |   |   | 5,460 |   |
|                                                                                                |   |       |   |   |       |   |   |   |   |
| Denominator for Diluted Earnings Per Share Adjusted Weighted-Average Shares and Assumed Conversions |   | 17,076,724 |   |   | 17,044,711 |   |   | 17,146,914 |   |
|                                                                                                |   |       |   |   |       |   |   |   |   |
| Basic (Loss) Earnings Per Share                                                                     | $      | (0.02)     |   | $      | (0.20)     |   | $ | 0.89 |   |
|                                                                                                |   |       |   |   |       |   |   |   |   |
| Diluted (Loss) Earnings Per Share                                                                   | $      | (0.02)     |   | $      | (0.20)     |   | $ | 0.89 |   |

----

|                     |   | Actual |    | RequiredFor CapitalAdequacy Purposes |   | To Be Well-Capitalized UnderPrompt CorrectiveAction Provisions |   |
|--------------------------|--------|--------|---------|--------------------------------------|--------|----------------------------------------------------------------|--------|
| (Dollars inThousands)    |   | Amount |    | Ratio                                |   | Amount                                                         | Ratio  |   | Amount | Ratio |   |
| As of December 31, 2010: |   |   |    |                                 |   |                                                           |   |   |   |   |   |
| Tier I Capital:          |   |   |    |                                 |   |                                                           |   |   |   |   |   |
| CCBG                     |   | $      | 249,619 |                                 | 13.24  | %                                                              | $      | 75,920 | 4.00 | % | * | * |   |
| CCB                      |   |   | 240,270 |                                 | 12.77  | %                                                              |   | 75,734 | 4.00 | % | 113,601 | 6.00 | % |
|                     |   |   |    |                                 |   |                                                           |   |   |   |   |   |   |   |
| Total Capital:           |   |   |    |                                 |   |                                                           |   |   |   |   |   |   |   |
| CCBG                     |   |   | 275,231 |                                 | 14.59  | %                                                              |   | 151,840 | 8.00 | % | * | * |   |
| CCB                      |   |   | 263,937 |                                 | 14.03  | %                                                              |   | 151,469 | 8.00 | % | 189,336 | 10.00 | % |
|                     |   |   |    |                                 |   |                                                           |   |   |   |   |   |   |   |
| Tier I Leverage:         |   |   |    |                                 |   |                                                           |   |   |   |   |   |   |   |
| CCBG                     |   |   | 249,619 |                                 | 10.10  | %                                                              |   | 75,920 | 4.00 | % | * | * |   |
| CCB                      |   |   | 240,270 |                                 | 9.74   | %                                                              |   | 75,734 | 4.00 | % | 94,668 | 5.00 | % |
|                     |   |   |    |                                 |   |                                                           |   |   |   |   |   |   |   |
| As of December 31, 2009: |   |   |    |                                 |   |                                                           |   |   |   |   |   |   |   |
| Tier I Capital:          |   |   |    |                                 |   |                                                           |   |   |   |   |   |   |   |
| CCBG                     |   | $      | 257,108 |                                 | 12.76  | %                                                              | $      | 81,370 | 4.00 | % | * | * |   |
| CCB                      |   |   | 238,433 |                                 | 11.86  | %                                                              |   | 81,194 | 4.00 | % | 121,791 | 6.00 | % |
|                     |   |   |    |                                 |   |                                                           |   |   |   |   |   |   |   |
| Total Capital:           |   |   |    |                                 |   |                                                           |   |   |   |   |   |   |   |
| CCBG                     |   |   | 284,423 |                                 | 14.11  | %                                                              |   | 162,740 | 8.00 | % | * | * |   |
| CCB                      |   |   | 263,806 |                                 | 13.12  | %                                                              |   | 162,388 | 8.00 | % | 202,985 | 10.00 | % |
|                     |   |   |    |                                 |   |                                                           |   |   |   |   |   |   |   |
| Tier I Leverage:         |   |   |    |                                 |   |                                                           |   |   |   |   |   |   |   |
| CCBG                     |   |   | 257,108 |                                 | 10.39  | %                                                              |   | 81,370 | 4.00 | % | * | * |   |
| CCB                      |   |   | 238,433 |                                 | 9.66   | %                                                              |   | 81,194 | 4.00 | % | 101,493 | 5.00 | % |

| * | Not applicable to bank holding companies. |
|---|-------------------------------------------|

----

| (Dollars in Thousands)                       |   | 2010   |   |   |    | 2009   |   |   | 2008   |   |
|----------------------------------------------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|
| Noninterest Income:                          |   |   |   |   |    |   |   |   |   |   |
| Merchant Fee Income                          |   | $      | 1,118  | (1     | )       |   | $      | 2,359  |   |   | $ | 5,548 |   |
| Interchange Commission Fees                  |   |   | 5,077  |   |    |   |   | 4,432  |   |   |   | 4,165 |   |
| ATM/Debit Card Fees                          |   |   | 4,123  |   |    |   |   | 3,515  |   |   |   | 2,988 |   |
| Retail Brokerage Fees                        |   |   | 2,820  |   |    |   |   | 2,655  |   |   |   | 2,399 |   |
|                                         |   |   |   |   |    |   |   |   |   |   |   |   |   |
| Noninterest Expense:                         |   |   |   |   |    |   |   |   |   |   |   |   |   |
| Maintenance Agreements -  FF&E |   |   | 3,185  |   |    |   |   | 3,225  |   |   |   | 3,506 |   |
| Legal Fees                                   |   |   | 4,301  |   |    |   |   | 3,975  |   |   |   | 2,240 |   |
| Professional Fees                            |   |   | 4,338  |   |    |   |   | 4,501  |   |   |   | 4,083 |   |
| Interchange Fees                             |   |   | 955    | (1     | )  |   |   | 1,929  |   |   |   | 4,577 |   |
| Telephone                                    |   |   | 2,059  |   |    |   |   | 2,227  |   |   |   | 2,522 |   |
| Advertising                                  |   |   | 2,905  |   |    |   |   | 3,285  |   |   |   | 3,609 |   |
| Processing Services                          |   |   | 3,651  |   |    |   |   | 3,591  |   |   |   | 3,921 |   |
| FDIC Insurance Fees                          |   |   | 6,324  |   |    |   |   | 5,167  |   |   |   | 1,304 |   |
| Printing and Supplies                        |   |   | 1,455  | (1     | )  |   |   | 1,882  |   |   |   | 1,977 | (1)  |
| Other Real Estate Owned                      |   |   | 14,922 |   |    |   |   | 7,577  |   |   |   | 1,306 | (1)  |

| (1) | Less than 1% of the appropriate threshold. |
|-----|--------------------------------------------|

| (Dollars in Thousands)          |   | Amount |    |
|---------------------------------|--------|--------|---------|
| Commitments to Extend Credit(1) |   | $      | 330,767 |   |
| Standby Letters of Credit       |   | $      | 12,675  |   |

| (1) | Commitments include unfunded loans, revolving lines of credit, and other unused commitments. |
|-----|----------------------------------------------------------------------------------------------|

----

----

| (Dollars in Thousands)                                             |   | Level 1 Inputs |    |   | Level 2 Inputs |   |    | Level 3 Inputs |   |   | Total Fair Value |   |
|--------------------------------------------------------------------|--------|----------------|---------|--------|----------------|--------|---------|----------------|--------|--------|------------------|--------|
| 2010                                                               |   |           |    |   |           |   |    |           |   |   |             |   |
| Securities available for sale:                                     |   |           |    |   |           |   |    |           |   |   |             |   |
|     US Treasury                                     |   | $              | 162,151 |   |           | $      | -       |           |   | $      | -                |   |   | $ | 162,151 |   |
|     U.S. Government Agencies and Corporations       |   |           | -       |   |           |   | -       |           |   |   | -                |   |   |   | - |   |
|     State and Political Subdivisions                |   |           | 5,278   |   |           |   | 74,022  |           |   |   | -                |   |   |   | 79,300 |   |
|     Mortgage-Backed Securities                      |   |           | -       |   |           |   | 56,217  |           |   |   | -                |   |   |   | 56,217 |   |
|     Other Securities                           |   |           | -       |   |           |   | 12,064  |           |   |   | -                |   |   |   | 12,064 |   |
|                                                               |   |           |    |   |           |   |    |           |   |   |             |   |   |   |   |   |
| 2009                                                               |   |           |    |   |           |   |    |           |   |   |             |   |   |   |   |   |
| Securities available for sale:                                     |   |           |    |   |           |   |    |           |   |   |             |   |   |   |   |   |
|     US Treasury                                |   | $         | 22,444  |   |           | $      | -       |           |   | $      | -                |   |   | $ | 22,444 |   |
|     U.S. Government Agencies and Corporations  |   |           | -       |   |           |   | -       |           |   |   | -                |   |   |   | - |   |
|     State and Political Subdivisions           |   |           | 3,709   |   |           |   | 103,841 |           |   |   | -                |   |   |   | 107,550 |   |
|     Mortgage-Backed Securities                      |   |           | -       |   |           |   | 34,143  |           |   |   | -                |   |   |   | 34,143 |   |
|     Other Securities                           |   |           | -       |   |           |   | 12,536  |           |   |   | -                |   |   |   | 12,536 |   |
|                                                               |   |           |    |   |           |   |    |           |   |   |             |   |   |   |   |   |

----

| (Dollars in Thousands)                                           |   | 2010   |    |    |   |   2009 |
|------------------------------------------------------------------|--------|--------|---------|---------|--------|------------------|
| Balance, Beginning of year                                       |   | $      | -       |    |   | $           | 1,107 |
| Change in unrealized gain included in other comprehensive income |   |   | -  |    |   |             |  (107 | ) |
| Change in unrealized loss included in other comprehensive income |   |   | 100     |    |   |             |  (700 | ) |
| Other than temporary credit impairment realized in earnings      |   |   | (100    | )  |   |             |  (300 | ) |
| Balance, End of  year                                  |   | $      | -       |    |   | $           | - |

----

|                                    |   | At December 31, |      |
|-----------------------------------------|--------|-----------------|-----------|
|                                    |   | 2010            |      |   | 2009 |   |
| (Dollars in Thousands)                  |   | CarryingValue   |      |   | EstimatedFairValue |   |   | CarryingValue |   |   | EstimatedFairValue |   |
| Financial Assets:                       |   |            |      |   |   |   |   |   |   |   |   |   |
| Cash                                    |   | $               | 35,410    |   |   | $ | 35,410 |   |   | $ | 57,877 |   |   | $ | 57,877 |   |
| Short-Term Investments                  |   |            | 200,783   |   |   |   | 200,783 |   |   |   | 276,416 |   |   |   | 276,416 |   |
| Investment Securities                   |   |            | 309,731   |   |   |   | 309,731 |   |   |   | 176,673 |   |   |   | 176,673 |   |
| Loans, Net of Allowance for Loan Losses |   |            | 1,723,235 |   |   |   | 1,675,997 |   |   |   | 1,871,941 |   |   |   | 1,851,699 |   |
| Total Financial Assets                  |   | $               | 2,269,159 |   |   | $ | 2,221,921 |   |   | $ | 2,382,907 |   |   | $ | 2,362,665 |   |
|                                    |   |            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities:                  |   |            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                |   | $               | 2,103,976 |   |   | $ | 2,105,568 |   |   | $ | 2,258,234 |   |   | $ | 2,258,899 |   |
| Short-Term Borrowings                   |   |            | 92,928    |   |   |   | 89,287 |   |   |   | 35,841 |   |   |   | 34,209 |   |
| Subordinated Notes Payable              |   |            | 62,887    |   |   |   | 62,884 |   |   |   | 62,887 |   |   |   | 62,569 |   |
| Long-Term Borrowings                    |   |            | 50,101    |   |   |   | 52,302 |   |   |   | 49,380 |   |   |   | 51,509 |   |
| Total Financial Liabilities             |   | $               | 2,309,892 |   |   | $ | 2,310,041 |   |   | $ | 2,406,342 |   |   | $ | 2,407,186 |   |

| (Dollars in Thousands)                                                             | 2010   |   |    | 2009   |   |    | 2008    |   |
|------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|---------|--------|
| OPERATING INCOME                                                                   |   |   |    |   |   |    |    |   |
| Income Received from Subsidiary Bank:                                              |   |   |    |   |   |    |    |   |
| Dividends                                                                          | $      | -      |    |   | $      | 35,000  |    |   | $ | 16,655 |   |
| Overhead Fees                                                                      |   | 3,059  |    |   |   | 3,209   |    |   |   | 3,209 |   |
| Other Income                                                                       |   | 74     |    |   |   | 121     |    |   |   | 184 |   |
| Total Operating Income                                                             |   | 3,133  |    |   |   | 38,330  |    |   |   | 20,048 |   |
|                                                                               |   |   |    |   |   |    |    |   |   |   |   |
| OPERATING EXPENSE                                                                  |   |   |    |   |   |    |    |   |   |   |   |
| Salaries and Associate Benefits                                                    |   | 1,359  |    |   |   | 1,694   |    |   |   | 1,341 |   |
| Interest on Long-Term Debt                                                         |   | -      |    |   |   | -       |    |   |   | 35 |   |
| Interest on Subordinated Notes Payable                                             |   | 2,008  |    |   |   | 3,730   |    |   |   | 3,735 |   |
| Professional Fees                                                                  |   | 1,185  |    |   |   | 999     |    |   |   | 978 |   |
| Advertising                                                                        |   | 96     |    |   |   | 202     |    |   |   | 244 |   |
| Legal Fees                                                                         |   | 226    |    |   |   | 176     |    |   |   | 213 |   |
| Other                                                                              |   | 623    |    |   |   | 813     |    |   |   | 620 |   |
| Total Operating Expense                                                            |   | 5,497  |    |   |   | 7,614   |    |   |   | 7,166 |   |
| Income Before Income Taxes and Equity in Undistributed Earnings of Subsidiary Bank |   | (2,364 | )  |   |   | 30,716  |    |   |   | 12,882 |   |
| Income Tax Benefit                                                                 |   | (771   | )       |   |   | (1,430  | )       |   |   | (737 | ) |
| Income Before Equity in Undistributed Earnings of Subsidiary Bank                  |   | (1,593 | )  |   |   | 32,146  |    |   |   | 13,619 |   |
| Equity in Undistributed Earnings of Subsidiary Bank                                |   | 1,180  |    |   |   | (35,617 | )       |   |   | 1,606 |   |
| Net (Loss) Income                                                                  | $      | (413   | )  |   | $      | (3,471  | )  |   | $ | 15,225 |   |

----

| (Dollars in Thousands, Except Per Share Data)                                                                                                                                     | 2010   |    |   | 2009   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|--------|
| ASSETS                                                                                                                                                                            |   |    |   |   |   |
| Cash and Due From Subsidiary Bank                                                                                                                                                 | $      | 10,986  |   |   | $      | 20,425 |   |
| Investment in Subsidiary Bank                                                                                                                                                     |   | 314,874 |   |   |   | 314,946 |   |
| Other Assets                                                                                                                                                                      |   | 2,693   |   |   |   | 2,265 |   |
| Total Assets                                                                                                                                                                      | $      | 328,553 |   |   | $      | 337,636 |   |
|                                                                                                                                                                              |   |    |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                       |   |    |   |   |   |   |   |
| Subordinated Notes Payable                                                                                                                                                        | $      | 62,887  |   |   | $      | 62,887 |   |
| Other Liabilities                                                                                                                                                                 |   | 6,647   |   |   |   | 6,850 |   |
| Total Liabilities                                                                                                                                                                 |   | 69,534  |   |   |   | 69,737 |   |
|                                                                                                                                                                              |   |    |   |   |   |   |   |
| SHAREOWNERS' EQUITY                                                                                                                                                               |   |    |   |   |   |   |   |
| Preferred Stock, $.01 par value, 3,000,000 shares authorized; no shares issued and outstanding                                                                                    |   | -       |   |   |   | - |   |
| Common Stock, $.01 par value; 90,000,000 shares authorized; 17,100,081 and 17,036,407 shares issued and outstanding at December 31, 2010 and December 31, 2009, respectively |   | 171     |   |   |   | 170 |   |
| Additional Paid-In Capital                                                                                                                                                        |   | 36,920  |   |   |   | 36,099 |   |
| Retained Earnings                                                                                                                                                                 |   | 237,679 |   |   |   | 246,460 |   |
| Accumulated Other Comprehensive Loss, Net of Tax                                                                                                                                  |   | (15,751 | )      |   |   | (14,830 | ) |
| Total Shareowners' Equity                                                                                                                                                         |   | 259,019 |   |   |   | 267,899 |   |
| Total Liabilities and Shareowners' Equity                                                                                                                                         | $      | 328,553 |   |   | $      | 337,636 |   |

| (Dollars in Thousands)                                                            | 2010   |   |    | 2009   |   |    | 2008    |   |
|-----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|---------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                             |   |   |    |   |   |    |    |   |
| Net Income                                                                        | $      | (413   | )       |   | $      | (3,471  | )       |   | $ | 15,225 |   |
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |   |   |    |   |   |    |    |   |   |   |   |
| Equity in Undistributed Earnings of Subsidiary Bank                               |   | (1,180 | )  |   |   | 35,617  |    |   |   | (1,606 | ) |
| Non-Cash Compensation                                                             |   | -      |    |   |   | -       |    |   |   | 62 |   |
| Increase in Other Assets                                                          |   | (97    | )       |   |   | (528    | )       |   |   | 254 |   |
| Increase in Other Liabilities                                                     |   | (203   | )  |   |   | 1,325   |    |   |   | 210 |   |
| Net Cash Provided by Operating Activities                                         |   | (1,893 | )  |   |   | 32,943  |    |   |   | 14,145 |   |
|                                                                              |   |   |    |   |   |    |    |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                             |   |   |    |   |   |    |    |   |   |   |   |
| Cash Paid for Investment in:                                                      |   |   |    |   |   |    |    |   |   |   |   |
| Purchase of held-to-maturity and available-for-sale securities                    |   | -      |    |   |   | -       |    |   |   | - |   |
| Increase in Investment in Bank Subsidiary                                         |   | -      |    |   |   | -       |    |   |   | - |   |
| Net Cash Used in Investing Activities                                             |   | -      |    |   |   | -       |    |   |   | - |   |
|                                                                              |   |   |    |   |   |    |    |   |   |   |   |
| CASH FROM FINANCING ACTIVITIES:                                                   |   |   |    |   |   |    |    |   |   |   |   |
| Payment of Dividends                                                              |   | (8,368 | )       |   |   | (12,959 | )       |   |   | (12,630 | ) |
| Repurchase of Common Stock                                                        |   | -      |    |   |   | (1,561  | )  |   |   | (2,414 | ) |
| Issuance of Common Stock                                                          |   | 822    |    |   |   | 1,052   |    |   |   | 891 |   |
| Net Cash (Used in) Provided by Financing Activities                               |   | (7,546 | )       |   |   | (13,468 | )       |   |   | (14,153 | ) |
|                                                                              |   |   |    |   |   |    |    |   |   |   |   |
| Net (Decrease) Increase in Cash                                                   |   | (9,439 | )  |   |   | 19,475  |    |   |   | (8 | ) |
| Cash at Beginning of Period                                                       |   | 20,425 |    |   |   | 950     |    |   |   | 958 |   |
| Cash at End of Period                                                             | $      | 10,986 |    |   | $      | 20,425  |    |   | $ | 950 |   |

----

|  (Dollars in Thousands)                                                                                                                                                                                                                                                                                     |   | 2010   |    |    | 2009   |   |    | 2008   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|---------|--------|--------|---------|--------|--------|
| Other Comprehensive Income (Loss):                                                                                                                                                                                                                                                                               |   |   |    |    |   |   |    |   |   |
|        Securities available for sale:                                                                                                                                                                                                                                              |   |   |    |    |   |   |    |   |   |
|              Change in net unrealized gain, net of tax expense of $41 and a tax benefit of $460 and net of tax expense of $683                                                                                                                  |   | $      | 79      |    |   | $      | (888    | )      |   | $ | 1,230 |   |
|        Retirement plans:                                                                                                                                                                                                                                                           |   |   |    |    |   |   |    |   |   |   |   |   |
|              Change in funded status of defined benefit pension plan and SERP, net of tax              benefit of $627, net of tax expense $4,441, tax benefit of $10,613 |   |   | (1,000  | )  |   |   | 7,072   |   |   |   | (16,179 | ) |
|        Net Other Comprehensive (Loss) Gain                                                                                                                                                                                                                                    |   | $      | (921    | )  |   | $      | 6,184   |   |   | $ | (14,949 | ) |
|                                                                                                                                                                                                                                                                                                             |   |   |    |    |   |   |    |   |   |   |   |   |
| The components of accumulated other comprehensive income, net of tax, as of year-end were as follows:                                                                                                                                                                                                            |   |   |    |    |   |   |    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                             |   |   |    |    |   |   |    |   |   |   |   |   |
|        Net unrealized gain on securities available for sale                                                                                                                                                                                                                        |   | $      | 667     |    |   | $      | 588     |   |   | $ | 1,476 |   |
|        Net unfunded liability for defined benefit pension plan and SERP                                                                                                                                                                                                            |   |   | (16,418 | )       |   |   | (15,418 | )      |   |   | (22,490 | ) |
|                                                                                                                                                                                                                                                                                                             |   | $      | (15,751 | )       |   | $      | (14,830 | )      |   | $ | (21,014 | ) |

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| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
|--------------|--------------------------------------------------------------------------------------|

| Item 9A. | Controls and Procedures |
|----------|-------------------------|

| Item 9B. | Other Information |
|----------|-------------------|

----

----

| Item 10. | Directors, Executive Officers, and Corporate Governance |
|----------|---------------------------------------------------------|

| Item 11. | Executive Compensation |
|----------|------------------------|

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Shareowners Matters |
|----------|------------------------------------------------------------------------------------------------|

Certain 

Principal 

----

Exhibits 

|   | The following documents are filed as part of this report |
|--------|----------------------------------------------------------|

|   | 3.1 | Amended and Restated Articles of Incorporation - incorporated herein by reference to Exhibit 3 of the Registrant’s 1996 Proxy Statement (filed 4/11/96) (No. 0-13358). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Amended and Restated Bylaws - incorporated herein by reference to Exhibit 3.2 of the Registrant’s Form 8-K (filed 11/30/07) (No. 0-13358). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | See Exhibits 3.1, and 3.2 for provisions of Amended and Restated Articles of Incorporation and Amended and Restated Bylaws, which define the rights of its shareholders. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.2 | Capital City Bank Group, Inc. 2005 Director Stock Purchase Plan - incorporated herein by reference to Exhibit 4.3 of the Registrant’s Form S-8 (filed 11/5/04) (No. 333-120242). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.3 | Capital City Bank Group, Inc. 2005 Associate Stock Purchase Plan - incorporated herein by reference to Exhibit 4.4 of the Registrant’s Form S-8 (filed 11/5/04) (No. 333-120242). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.4 | Capital City Bank Group, Inc. 2005 Associate Incentive Plan - incorporated herein by reference to Exhibit 4.5 of the Registrant’s Form S-8 (filed 11/5/04) (No. 333-120242). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.5 | In accordance with Regulation S-K, Item 601(b)(4)(iii)(A) certain instruments defining the rights of holders of long-term debt of Capital City Bank Group, Inc. not exceeding 10% of the total assets of Capital City Bank Group, Inc. and its consolidated subsidiaries have been omitted; the Registrant agrees to furnish a copy of any such instruments to the Commission upon request. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Capital City Bank Group, Inc. 1996 Dividend Reinvestment and Optional Stock Purchase Plan - incorporated herein by reference to Exhibit 10 of the Registrant’s Form S-3 (filed 01/30/97) (No. 333-20683). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Capital City Bank Group, Inc. Supplemental Executive Retirement Plan - incorporated herein by reference to Exhibit 10(d) of the Registrant’s Form 10-K (filed 3/27/03) (No. 0-13358). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.3 | Capital City Bank Group, Inc. 401(k) Profit Sharing Plan – incorporated herein by reference to Exhibit 4.3 of Registrant’s Form S-8 (filed 09/30/97) (No. 333-36693). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.4 | 2005 Stock Option Agreement by and between Capital City Bank Group, Inc. and William G. Smith, Jr., dated March 24, 2005 – incorporated herein by reference to Exhibit 10.1 of the Registrant’s Form 8-K (filed 3/31/05) (No. 0-13358). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | 2006 Stock Option Agreement by and between Capital City Bank Group, Inc. and William G. Smith, Jr., dated March 23, 2006 – incorporated herein by reference to Exhibit 10.1 of the Registrant’s Form 8-K (filed 3/29/06) (No. 0-13358). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Capital City Bank Group, Inc. Non-Employee Director Plan, as amended – incorporated herein by reference to Exhibit 10.2 of the Registrant’s Form 8-K (filed 3/29/06) (No. 0-13358). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | Form of Participant Agreement for the Capital City Bank Group, Inc. Long-Term Incentive Plan – incorporated herein by reference to Exhibit 10.1 of the Registrant’s Form 10-Q (filed 8/10/06) (No. 0-13358). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | Form of Participant Agreement for 2008 Stock-Based Incentive Plan – incorporated herein by reference to Exhibit 10.1 of the Registrant’s Form 8-K (filed 6/5/08) (No. 0-13358). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.9 | Form of Participant Agreement for 2009 Stock-Based Incentive Plan – incorporated herein by reference to Exhibit 10.1 of the Registrant’s Form 8-K (filed 6/30/09) (No. 0-13358). |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11 | Statement re Computation of Per Share Earnings.* |
|--------|----|--------------------------------------------------|

|   | 14 | Capital City Bank Group, Inc. Code of Ethics for the Chief Financial Officer and Senior Financial Officers - incorporated herein by reference to Exhibit 14 of the Registrant’s Form 8-K (filed 3/11/05) (No. 0-13358). |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21 | Capital City Bank Group, Inc. Subsidiaries – incorporated herein by reference to Exhibit 21 of the Registrant’s Form 10-K (filed 3/13/09) (No. 0-13358). |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.1 | Consent of Independent Registered Public Accounting Firm.** |
|--------|------|-------------------------------------------------------------|

|   | 31.1 | Certification of CEO pursuant to Securities and Exchange Act Section 302 of the Sarbanes-Oxley Act of 2002.** |
|--------|------|---------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of CFO pursuant to Securities and Exchange Act Section 302 of the Sarbanes-Oxley Act of 2002.** |
|--------|------|---------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.** |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.** |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------|

| *  | Information required to be presented in Exhibit 11 is provided in Note 13 to the consolidated financial statements under Part II, Item 8 of this Form 10-K in accordance with the provisions of U.S. generally accepted accounting principles. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** | Filed electronically herewith.                                                                                                                                                                                                                 |

----

Signatures

----

|   Directors:       |   |                        |
|------------------------------|--------|-----------------------------|
|                         |   |                        |
| /s/ DuBose Ausley            |   | /s/ John K. Humphress       |
|  DuBose Ausley          |   | John K. Humphress           |
|                         |   |                        |
| /s/ Thomas A. Barron         |   | /s/ Lina S. Knox            |
|  Thomas A. Barron       |   |  Lina S. Knox          |
|                         |   |                        |
| /s/ Frederick Carroll, III   |   | /s/ Henry Lewis III         |
|  Frederick Carroll, III |   |  Henry Lewis III       |
|                         |   |                        |
| /s/ Cader B. Cox, III        |   | /s/ William G. Smith, Jr.   |
|  Cader B. Cox, III      |   |  William G. Smith, Jr. |
|                         |   |                        |
| /s/ J. Everitt Drew          |   |                        |
|  J. Everitt Drew        |   |                        |
|                         |   |                        |
|                         |   |                        |
|                         |   |                        |